The Establishment Of An Investment Management Institution Is Questioned By Faisal Basri, Luhut: Donald Trump Is Actually Interested

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan. (Photo: Instagram @ luhut, pandjaitan)

JAKARTA - The establishment of a sovereign wealth fund (SWF) was questioned by several parties, one of which was economist Faisal Basri. Even so, the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan claims that the formation of the SWF has the support of US President Donald Trump.

Luhut said Trump's interest in SWF was conveyed during his working visit to the United States some time ago. He is sure that with this plan, Indonesia will be able to contribute to strengthening economic relations between the United States and Indonesia.

"I am very pleased that at the end of his tenure, Trump is interested in the concept of the Indonesia Sovereign Wealth Fund. I am sure that the Indonesia Sovereign wealth fund can attract investment in the US market to the economy in Indonesia which will later contribute to strengthening the economic relationship between the United States and Indonesia," he said, at the 8th US-Indonesia Investment Summit, Friday, 11 December.

In this regard, Luhut said that the Indonesian government continues to pay attention to global economic developments, including the trade war and also the impact of the COVID-19 pandemic.

According to Luhut, these two factors also have an impact on markets in developing countries such as Indonesia. However, Luhut sees a trend of economic improvement in the near future after contracting 5.20 percent in the third quarter of 2020

"Indonesia hopes to recover better in the future," he explained.

Meanwhile, senior economist Faisal Basri actually questioned why the Job Creation Omnibus Law contained the establishment of an investment management institution. According to him, this is irrelevant.

According to Faisal, investment in Indonesia is enormous. Investment per GDP is the highest in ASEAN and the highest in the Jokowi era. In fact, Indonesia's foreign investment has never been dependent on foreign investment. The problem is that Indonesia's investment is large but the results are small.

"Do you imagine what business in the Omnibus Law there is a new institution, a special investment institution called SWF or an investment management agency? That (institution) is for debt. So this institution cannot be audited by the Supreme Audit Agency (BPK). Act, "he said.