Indonesia’s Nation-Building Could Be Good for Your Super

Financial Review

26 November 2020

Indonesia is pushing ahead with a sovereign wealth fund that it hopes will pull in international capital to fund big-ticket projects including the planned new capital on the island of Borneo. The government of President Joko Widodo has committed to investing $US5 billion ($6.8 billion) in cash and stakes in state-owned enterprises to kick-start the fund now enabling legislation has cleared parliament, part of the controversial omnibus law. Last week the United States International Development Finance Corporation confirmed an earlier pledge by signing a letter of interest to invest $US2 billion in the fund. Writing in The Diplomat this week, James Guild at RSIS suggested the IDFC letter might not be more than “virtue signalling” from a lame-duck Trump administration. He said the fund, “much like Indonesia’s mooted new capital city, may remain more aspirational than actionable”.

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Last updated on 30/11/2020