Summoned By The DPR, Sri Mulyani Explained The Duties And Authorities Of The Investment Management Institution

Minister of Finance, Sri Mulyani. (Photo: Setkab)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani Indrawati said that the establishment of an Investment Management Institution (LPI) is a mandate of Law Number 11 of 2020 concerning Job Creation in article 165 paragraph 1. In this regulation, it is stated that the establishment of an investment management institution which is given special authority or sui generis in the context of government investment management.

"For the first time based on this law, an Investment Management Institution or LPI was formed. LPI operates by establishing a master fund, sub-fund and joint venture, especially through a co-investment scheme with foreign investors to attract foreign direct investment in Indonesia, ”he explained to Commission XI DPR-RI, Monday, January 25.

The minister added, the formation of the LPI was also marked by the issuance of Government Regulation (PP) Number 74 of 2020 concerning the LPI.

This PP regulates the governance and operations of the Investment Management Institution. In this regulation, there are several main policies that are regulated, including regarding the status of the LPI Institution as a legal entity owned by the government and responsible to the President.

The LPI organizational structure is a 2 tier board that represents sovereign status but also professionalism or independence, consisting of a Supervisory Board and a Board of Directors. The Supervisory Board is the Minister of Finance, the Minister of BUMN and 3 professional supervisory boards who will strengthen the independence of the LPI / INA.

"Currently, the Supervisory Board, after the Presidential Decree was issued by the President, carries out a process for the recruitment of the board of directors. The selection process is ongoing and it is targeted to be completed soon because the President wants to see that the LPI can run immediately, "he added.

The purpose of the functions and duties of the LPI is an institution that is given special authority in the context of investment management as stipulated in the law, so the aim is to increase and optimize the investment values that are managed in the long term, in order to support sustainable development.

Meanwhile, its duties and functions are to manage investment and the LPI is in charge of planning to supervise and control and evaluate the investment.

Meanwhile, the authority given is to place funds in financial instruments, carry out asset management activities, collaborate with other parties including entities in trusts or in this case trust funds, administer assets, determine potential investment partners and provide and receive loans.

"In exercising this authority, LPI can collaborate with investment partners, investment managers of BUMN, government agencies or institutions and entities at home and abroad," concluded the Minister of Finance.