Indonesia will establish sovereign wealth fund to support the economy

To attract investment and give a boost to the economy, Indonesian government is preparing 75 trillion rupiah (S$6.8 billion) in capital to set up a sovereign wealth fund.

The government would inject up to 30 trillion rupiah ($2.04 billion) in cash for its equity and add other assets, including stakes in state companies that would in total reach 75 trillion rupiah or $5 billion, Minister Sri Mulyani Indrawati said. 

The government would leverage that to attract funds for investment totalling $15 billion, she said. 

The fund would be managed by professionals in its executive board and government ministers would sit in the supervisory board, she said. 

“We hope we can get reputable strategic partners so we can develop these assets to attract investment better,” she said. 

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