The JBIC is ready to support SWF Indonesia's funding by providing US$4 billion (Rp57 trillion), twice as much as the amount pledged by the US International Development Finance Corporation (DFC), the US financing institution.
Jakarta (ANTARA) - The Japan Bank for International Cooperation (JBIC) voiced readiness to invest US$4 billion in Indonesia's Sovereign Wealth Fund (SWF), Coordinating Minister for Economic Affairs Luhut Binsar Pandjaitan stated.

"The JBIC is ready to support SWF Indonesia's funding by providing US$4 billion (Rp57 trillion), twice as much as the amount pledged by the US International Development Finance Corporation (DFC), the US financing institution," Pandjaitan noted in the written statement of the Indonesian Embassy in Tokyo on Friday.

JBIC Governor Maeda Tadashi drew attention to the investment commitment of US$4 billion at a meeting with Pandjaitan, Minister of State-Owned Enterprises Erick Thohir, and Indonesian Ambassador to Japan Heri Akhmadi.

Thohir affirmed that both sides will shortly follow up on the commitment at a technical level.

The Indonesian government is optimistic of the JBIC fulfilling its investment commitment during the first quarter of 2021.

"The government regulation concerning SWF Indonesia will be completed in mid-December. The regulation will speed up the creation of the Indonesian sovereign wealth fund," he stated.

Meanwhile, Akhmadi stated that the JBIC will be one of the financial institutions participating in the master fund of SWF Indonesia termed the Nusantara Investment Authority (NIA).

"The support from JBIC and the Japanese government will certainly strengthen strategic cooperation between Indonesia and Japan and attract the Japanese private sector to invest in Indonesia," he remarked.

Panjaitan and Thohir visited Japan for a two-day visit on Dec 2-4 during which they held talks with representatives from the Japanese government and companies, the ambassador noted in a written statement on Wednesday.

They also met with several officials at the Japanese Ministry of Economy, Trade, and Industry and various financial institutions, including the JBIC.

"The visit of the two ministers is a follow-up to the agreement reached between Indonesian President Joko Widodo and the Japanese prime minister in Bogor on October 20, 2020," Akhmadi revealed.

Formed under the new job creation law, SWF Indonesia, also called the Nusantara Investment Authority, has been authorized to manage investment funds to support the Indonesian economy.

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Translator: Ade irma Junida/Suharto
Editor: Sri Haryati
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