Indonesia is preparing to establish a sovereign wealth fund (SWF), following the passage of a new job-creation law, which calls for the launch of a vehicle with $1 billion in initial funding from the state budget.
It will be called Indonesia Investment Authority (INA) and will consist of development and stabilization funds, according to The Jakarta Post.
Finance minister Sri Mulyani Indrawati has revealed that the Indonesian government will immediately increase the fund's capital to $5 billion following the launch, of which $2 billion would be in cash from the state budget and the remaining $3 billion, in shares of state-owned enterprises and assets.
