The President of Joko Widodo (Jokowi) has introduced an investment management institution (LPI) or sovereign wealth fund (SWF) to the governors who attended virtually. It was explained that Indonesia needs to know that SWF is one of the breakthroughs in the framework of national financing.

"That mean is for the Governors to know so that we have a breakthrough in the framework of our national financing not only depending on the state budget, not only on loan assistance. But we will also have one more instrument, namely the SWF, whose name is the Indonesia Investment Authority, "Jokowi explained, in Jakarta, Wednesday (6/1/2021).

One of the reasons for the formation of the SWF, said Jokowi, was the high need for future development financing. Then also the ratio of government debt to Gross Domestic Product also continues to increase. Then the financing capacity of state-owned enterprises also has limitations.

"So that there is a gap between domestic funding capacity and financing needs for national development. Therefore, this month a sovereign wealth fund has been formed, "Jokowi added.

All the parties should know the SWF, said Jokowi, especially when it comes to regional implementation, the Governor is expected to understand and help.

"So that everyone can recognize the name of this item. So that later in the implementation in the field when it comes to this area, I also ask the governors to help, "said Jokowi.

Source: CNBC News