Laoly stated that the INA was formulated to optimize and attract investment as well as to collaborate with various financial institutions abroad.
INA is a form of Investment Management Institution (LPI) created with the Job Creation Law as the basis. This institution is the Indonesian legal agency wholly owned by the state.
Through the INA, the government expects Indonesia to be able to add capital for development without raising the debt ratio and is able to learn the best practices from several other countries, Laoly expounded.
INA can also be the strategy to reduce the debt to gross domestic product (GDP) ratio of Indonesia.
The government formulated the management and operation of INA by adopting various practices from reputable institutions that work in similar sectors in various nations, he noted.
Hence, the institution is expected to prioritize the principles of independence, transparency, and accountability.
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The minister remarked that the government is optimistic of being able to increase the valuation of state assets through the INA. Furthermore, the INA was expected to improve the performance and benefit of assets, so that their end results can be utilized by the public.
"Hence, implementation of the Sovereign Wealth Fund (SWF) concept as well as the presence of the INA should be guaranteed and believed more broadly by the public," he stated.
The minister also asserted the Law and Human Rights Ministry's commitment to supporting and participating in the legal mentorship process through law evaluation and analysis and the formation of follow-up regulations.
"It will be required (by the government) in order to successfully implement and realize the SWF concept and INA management in guaranteeing the sustainability of development financing in Indonesia," he noted.
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Translator: Putu Savitri, Fadhli Ruhman
Editor: Rahmad Nasution
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