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Bisnis.com, JAKARTA – Minister of State Owned Enterprises (BUMN), Erick Thohir, affirms that the Employment Creation Law will increase government investment through the formation of investment management institutions or sovereign wealth fund.
Erick explained that the Employment Creation Law was born to break the stagnation of Indonesia’s economic growth. The regulation also aims to stimulate the economy today and after the Covid-19 pandemic.
He believes that the Employment Creation Law will help increase government investment by establishing an investment management agency (LPI).
“The government through the formation of SWR to accelerate the development of various strategic projects such as highways, airports, ports, health services, and also potential sectors such as tourism and technology,” he explained in a virtual seminar, this Tuesday ( 11/24/2020).
Erick expects the management of these assets to provide optimal results with transparent, professional and responsible management. Subsequently, the management will be supervised by investors from international circles representing countries.
“For me-restart economy, we need to create a friendly investment climate for national and international investors, “he explained.
As a note, the formation of ssovereign wealth fund (SWF) contained in the Employment Creation Law. The legal entity was formed to carry out the operation of the central government investment.
The government explained that the initial capital of LPI would later consist of a combination of state assets or BUMN. Capital injections in the form of cash funds can reach up to IDR 30 trillion of state-owned assets (BMN), shares of BUMN or companies, and accounts receivable from the state.
Through a government regulation (PP), the LPI will be regulated, including equity participation, which can reach IDR 75 trillion. With this equity, the government claims to be able to attract investment funds of up to three times or 225 trillion rupees.
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