Luhut Said That The LPI Board Of Directors Will Be Elected Next Week, One Of Them Is His Own Nephew

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

JAKARTA - The government has established a Supervisory Board for the Sovereign Wealth Fund (SWF), aka the Indonesian Investment Management Institute (LPI) or the Indonesia Investment Authority (INA). The institution was established through Law (UU) Number 11 of 2020 concerning Job Creation. However, until now the names that are included in the LPI board of directors have not been disclosed to the public.

The Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan targets that the names who fill the LPI board of directors will be announced next week by President Joko Widodo (Jokowi).

"So, I hope that this week or next week we can announce who the BOD will take care of investment in Indonesia. We believe they can get the best for running this organization," he said at the Mandiri Investment event, Wednesday, February 3. .

According to Luhut, the goal of forming the LPI is so that in the future Indonesia will have many investment opportunities. With LPI, investors can enter the country. This investment can boost economic growth and help move the joints of the domestic economy.

Luhut gave an example, so far, economic growth has been supported by the micro, small and medium enterprises (UMKM) sector. In fact, during this pandemic, small and medium industries were the saviors of the national economy. However, he admitted, so far, the government's concern for MSMEs was still not optimal.

"We also believe that the backbone of our economy is the UMKM. We talk a lot about UMKM but we give very little," he explained.

Regarding the LPI board of directors, based on the information circulating, there are several names that are alleged to be strong candidates for this LPI leader. They are Pandu Patria Sjahrir, Commissioner of the Indonesia Stock Exchange; then former Pertamina Finance Director Arief Budiman, President Director of PT Indika Energy Arsjad Rasjid, CEO of PT Bank CIMB Niaga Tigor Siahaan, and President Director of PT Credit Suisse Sekuritas Indonesia Rizal Gozali.

However, currently the names of candidates for the LPI directors have narrowed down to three names. They are Pandu Patria Sjahrir, Arief Budiman and Tigor Siahaan.

1. Pandu Patria Sjahrir

Pandu was born in Boston in 1979. He is listed as still serving as a director at PT Toba Bara Sejahtra Tbk which has now changed its name to TBS Energi Utama with the ticker code TOBA on the Indonesia Stock Exchange.

TOBA is a company initiated by Pandu's uncle who is now the Coordinating Minister for Maritime Affairs and Investment (Marinvest) Luhut Binsar Pandjaitan.

Prior to Toba Bara, Pandu, who is also the son of economist Doctor Sjarir, also served as a Senior Analyst specializing in the energy and mining sector at Matlin & Patterson (2007-2010), Principal at Byun & Co, Alternative Energy Fund Asia (2002-2005 ), and as an Analyst at Lehman Brothers (2001-2002).

Not only that, Pandu is also noted to have joined many startup companies. Managing Partner of Indies Capital, since April 2017 has been a commissioner at Gojek Indonesia as well as President Commissioner at SEA Group Indonesia which oversees Shopee. Since June 30, 2020, Pandu is also listed as a Commissioner of the IDX with a term of office of 2020-2023.

2. Tigor Siahaan

Tigor is currently listed as the President Director and Main CEO of PT Bank CIMB Niaga Tbk. He was given a mandate by the CIMB Group from Malaysia in 2015 until now to encourage the company's performance which had slumped.

Currently, Tigor is the number one person in the bank with the ticker code CIMB on the Indonesia Stock Exchange. CIMB Niaga is owned by the Malaysian government SWF fund manager through CIMB Group Sdn Bhd with a share ownership of 91.48 percent as of December 30, 2020.

3. Arief Budiman

Arief graduated from the Bandung Institute of Technology majoring in Industrial Engineering in 1996. Arief was recorded as an assessor for the formation of SWF from the Ministry of BUMN. In his career, this man who was born in 1974 was a commissioner of PT Pertamina EP Cepu on March 30, 2015.

This holder of a Master Business Administration (honors) degree from the Wharton School University of Pennsylvania has also been a consultant at Booz Allen & Hamilton, Asia, Merrill Lynch, Associate Booz Allen & Hamilton US, Arief million had been the finance director of PT Pertamina and had been a Director Main PT Danareksa.

For your information, the LPI is an institution that aims to respond to financing needs and additional investment through Foreign Direct Investment (FDI). The objective of government investment through this legal umbrella is to obtain economic benefits, social benefits, and contribute to the national economy.

In addition, the LPI can also be used as a vehicle for the government or BUMN to increase the value of its assets. Certain state or BUMN assets can be transferred or entrusted to be better managed by LPI.

Meanwhile, the establishment of the LPI begins with the provision of capital of Rp. 15 trillion which will gradually be expanded to Rp. 75 trillion in 2021. For additional capital in the future will be carried out through PMN and capitalization of retained earnings at the LPI.

Later, as much as 10 percent of the LPI profit earned annually is planned to be set aside to form mandatory reserves. Profit allowance for compulsory reserves can be stopped when the accumulated reserve requirement has reached 50 percent of the current LPI capital.

Meanwhile, the part of the profit that is not included in the statutory reserve will become retained earnings. If the accumulated retained earnings have exceeded 50 percent of the LPI's capital, the excess can only be used as a profit sharing for the government at most 30 percent of the previous year's profit.