Indonesian SWF: Swimming Against the Stream
Summary
- The government plans to create a particular sovereign wealth fund, a state-owned investment agency. The agency will have a distinctive feature not only to manage the government’s capital surplus but also to oversee the fund placements from other financial institutions, especially the foreign ones.
- The Supreme Audit Agency’s independent auditor will carry out the auditing process on the SWF-the new governmental institution engineered from the Omnibus Laws. Therefore, any existing ministry, other than the State-Owned Enterprises Ministry, can manage and supervise the SWF.
- The possibility of overlapping and redundant institutions is also high since Indonesia has already had an insurance agency and fund provider for the government’s strategic projects. If such a thing happens, the authority of the existing institutions is getting lesser and lesser.