Japan to Invest $4 Billion in Indonesia’s Sovereign Wealth Fund
(Bloomberg) -- Japan will invest $4 billion in Indonesia’s planned sovereign wealth fund through the Japan Bank for International Cooperation.
The amount is double the commitment provided by the U.S. International Development Finance Corporation, according to Luhut Pandjaitan, Indonesia’s minister of maritime and investment affairs, after a meeting with JBIC Governor Tadashi Maeda.
The Nusantara Investment Authority, as the fund will be known, is set to start operating in early 2021 and is seeking to attract 225 trillion rupiah ($16 billion) in investments. President Joko Widodo is using the sovereign fund to support the economy, with an aim to tame a spike in unemployment and climb out of a recession by year-end.
Indonesia Sweetens Investor Pitch With $5 Billion Wealth Fund
Pandjaitan and State-Owned Enterprises Minister Erick Thohir will head to Abu Dhabi and Saudi Arabia to seek more support for the fund. The government will issue detailed rules on the fund in mid-December, according to Thohir.
©2020 Bloomberg L.P.