Jakarta, CNBC Indonesia – Coordinating Minister for Maritime Affairs and Investment Luhut B. Pandjaitan revealed the investment commitment from the governor of Japan Bank for International Cooperation (JBIC) MAEDA Tadashi for the establishment of a Sovereign Wealth Fund (SWF) or ‘endowment fund’ in Indonesia.
“JBIC is ready to support SWF Indonesia’s funding of US $ 4 billion (Rp. 57 Trillion), twice as much as what was conveyed by the US International Development Finance Corporation (DFC) – a financing institution from the United States,” Luhut said in a statement on Friday ( 4/12).
Luhut accompanied by BUMN Minister Erick Thohir and Indonesian Ambassador to Japan Heri Akhmadi continued their visit in Tokyo on Friday (4/12) and held a marathon meeting with the Governor of JBIC and no less than 20 other potential Japanese investors in the finance and energy sector.
“JBIC will become one of the financial institutions participating in the SWF Indonesian master fund called the Nusantara Investment Authority (NIA). Support from JBIC and the Japanese Government will certainly strengthen the strategic partnership between Indonesia and Japan, and increasingly attract other Japanese private sectors to invest in Indonesia, “said Heri Akhmadi.
The commitment conveyed by the Governor of JBIC will be immediately followed up at the technical level and it is hoped that JBIC investment can begin to enter Indonesia in the first quarter of 2021.
“The Government Regulation (PP) which regulates SWF Indonesia will be completed in mid-December and of course the PP will certainly accelerate the formation of an Indonesian endowment fund institution,” said Erick.
Luhut and Erick are scheduled to go directly to Abu Dhabi and Saudi Arabia on Saturday (5/12) to explore support for the formation of the NIA with other related parties.
On separate occasions, Luhut and Erick met with the Japanese Minister of Economy, Trade and Industry (METI) Kajiyama Hiroshi. Luhut emphasized the commitment of the Indonesian government to continue to provide legal certainty to Japanese investors.
“With the Omnibus Law on the Job Creation Law, of course Indonesia’s tax regulations will get better,” said Luhut.
Coordinating Minister Luhut also raised a number of strategic agendas for bilateral cooperation, including Japan’s commitment to realize MRT Jakarta Phase 2 (two) on time.
The climate change agenda was also discussed at the meeting. Japan hopes Indonesia can support Japan’s target to achieve “Carbon Neutral” by 2050.
“We are ready to support the achievement of Indonesia’s SDGs through Japanese technology. The Carbon Capture Storage project that is being built in Gundih, Central Java is a form of Japanese commitment,” said Kajiyama.
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