“With a strong legal foundation and political support as well as a great supervisory board and a board of directors and a strong international network, I believe that the Indonesia Investment Authority (INA) will gain national and international trusts and be able to be a world-class Sovereign Wealth Fund,” Indonesian President Joko Widodo said. He mentioned last year that INA has potential to bring new investment around $20 billion to the country. The government has seen great opportunities after approaching the potential investors, including United Arab Emirates, Japan, Britain, Germany, and United States.
Beliefs in INA come from the reasons below. – The establishment of INA has a strong legal basis, namely the job creation law which helps to create jobs and increase foreign and domestic investment by reducing regulatory requirements for business permits and land acquisition.
– INA is a professional institution protected by law and uses professional considerations in determining its works.
– Its management team is made up of the best professionals who have international experiences, and head hunters. “The INA is managed by the nation’s best talent who are experienced on the international stage,” said Joko Widodo.
Finance minister, Sri Mulyani, revealed that INA will form a master, sub Fund and a joint venture company to carry out the the sovereign wealth fund’ strategic investment plans. Most of the funds would invest in brown field projects that already have revenue streams such as toll roads, airports and ports.
It was reported that the government has injected capital Rp15 trillion (US$1.07 billion) in the new state firm. To increase the investment capacity of INA, the government is committed to lifting up the capital of the agency up to Rp75 trillion gradually until end of this year.
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