Luhut And Erick Thohir Go To Japan To Seek Money For Injecting Investment Management Institutions

JAKARTA - The Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan invited Japan to increase investment through the Sovereign Wealth Fund (SWF) or the Nusantara Investment Authority (NIA). SWF or NIA is commonly referred to as an Investment Management Institution.

Quoted from Antara, the invitation was conveyed directly by Luhut during his meeting with the Advisor to the Prime Minister of Japan, Izumi Hiroto at the Japanese Prime Minister's Office, in Tokyo, Thursday 3 December.

"My goal and Minister Erick to Tokyo is to invite Japan to increase investment through the SWF institution which will be formed based on the mandate of the Omnibus Law. The Nusantara Investment Authority (NIA) will provide flexibility for investors to invest in equity or assets with transparent and professional management. , "said Luhut.

Also attending the meeting was Minister of BUMN Erick Thohir and the Indonesian Ambassador to Japan Heri Akhmadi. Meanwhile from the Japanese side, there were the Governor of Japan Bank of International Cooperation (JBIC) Maeda Tadashi, and the Japanese Ambassador to Indonesia Kanasugi Kenji.

Luhut also said that the Japanese Government, through JBIC, promised to participate in the Indonesian SWF. Meanwhile, Erick Thohir said SWF Indonesia is expected to be a partner for foreign investors to invest in attractive and priority sectors in Indonesia, including toll roads, airports and ports.

"We want the value of assets owned by BUMN to be optimized," added Erick.

Meanwhile, Ambassador Heri said that in general Japan supported the formation of the Indonesian SWF. He said several Japanese business circles had expressed interest in participating in a number of projects.

"Several Japanese business circles have also expressed interest in participating in the development of health tourism in Bali, port operator management and increasing investment in the Batang Industrial Zone," said Heri.

Prior to the meeting with the Japanese PM Advisor, Luhut and Erick had also met the Secretary General of the Liberal Democratic Party (LDP) for the Upper House, Seko Hiroshige, who is also the Former Minister of Economy, Trade and Industry of Japan, to discuss the Japanese parliament's support for public and private investment. Japan at SWF Indonesia and received a positive response.

In addition, on separate occasions Luhut and Erick have also held a series of meetings for a number of Japanese business leaders, including Mitsui & Co, Mitsubishi Corp, Sojitz, Nippon Steel and Hanwa.

SWF Indonesia or NIA, which will start operating in early 2021, is targeted to be one of the frameworks for Indonesia's economic recovery, in which the component of economic growth is not only from domestic demand, but also by encouraging investment inflows. The Indonesian government is ready to inject an initial capital of IDR 75 trillion for the formation of this NIA.

Luhut and Erick are scheduled to be in Tokyo, Japan until December 5, 2020. In addition to the series of meetings taking place on Thursday, the two Ministers are also scheduled to meet the Japanese Economy Minister, the Governor of JBIC, and representatives of a number of pension funds and financial institutions.