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27 November 2020 By Una Galani Follow @ugalani

Buyout firms and Gulf nations are being wooed to invest $15 bln in a government-backed mashup of Singaporean and Indian models. It’s an ambitious effort to finance President Joko Widodo’s development plans, but also faces limits on how much outside money will take the plunge.

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Indonesia is seeking to raise $15 billion for the country’s planned new sovereign wealth fund, Finance Minister Sri Mulyani Indrawati told Reuters in an interview published on Nov. 17.

The structure has been adopted to entice investors with various appetites for risk, return and length of investment, she added. Sectors to be covered include electricity, toll roads and health.

The minister told Reuters that the industry-based funds would operate under an over-arching “master fund”, into which investors also could inject money. Indonesia initially will inject $5 billion of cash and stakes of state-owned enterprises into the fund, which will also manage securitised state assets.

The fund, widely referred to as the Indonesia Investment Authority, is being pitched to private equity firms. It will be managed by professionals and have a supervisory board comprised of ministers, Reuters reported.

Context News

Indonesia is seeking to raise $15 billion for the country’s planned new sovereign wealth fund, Finance Minister Sri Mulyani Indrawati told Reuters in an interview published on Nov. 17.

The structure has been adopted to entice investors with various appetites for risk, return and length of investment, she added. Sectors to be covered include electricity, toll roads and health.

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