Indonesian President Jakoko Widodo has announced a Sovereign Fund with plans to bring in investors from the Middle East and other Asian countries. The fund is set to play a critical role in President Jakoko Widodo’s plans to implement major development projects in Indonesia including a massive metro system and the development of a new capital city.
The fund is reported to start off with $ 5 billion from tax payers with stakes in Indonesian state owned enterprises. Finance Minister Sri Mulyani Indrawati has stated that an additional $15 billion will be invested in to the fund after which foreign investors would also be able to invest in to the master fund or to individual industries.
The Sovereign Fund designed by President Jakoko Widodo is designed after Singapore’s own Sovereign fund “TEMASEK” which is currently valued at $228 billion. A similar fund was initiated in the Maldives under President Abdulla Yameen’s administration. Just like President Jakoko Widodo’s planned fund, the Sovereign Wealth Fund of Maldives aimed to deploy and invest funds overseas to save for a rainy day.