Sri Mulyani: The Presence Of SWF Can Help Reduce Indonesia's Debt

Minister of Finance Sri Mulyani (ANTARA)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani Indrawati said the government is using the Investment Management Institution (LPI) or Sovereign Wealth Funds (SWF) instrument as a means of collaboration to continue domestic development in the form of equity.

Sri explained that the presence of an instrument called the Indonesia Investment Authority (INA) is believed to be able to reduce the government's debt exposure.

"The establishment of an investment management institution or Indonesia investment authority. This is one of our efforts to continue to increase the attractiveness of the Indonesian economy, including providing options for investors to invest in Indonesia," he said, in a webinar, Wednesday, March 3.

Sri Mulyani explained that the LPI is one of the government's efforts to increase the attractiveness of the Indonesian economy, as well as to provide options for investors to invest in Indonesia.

Not only that, Sri Mulyani said that the investment institution would also help alleviate the APBN which had limitations. This year and in 2020, the state budget must be the main instrument to drive the economy from the impact of the COVID-19 pandemic.

"The APBN is still a policy instrument that will determine the continuation of the national economic recovery," he said.

He said that the need for infrastructure development in Indonesia is still very large. For example, for the construction of roads, electricity, toll roads, ports, airports, clean water and sanitation, to the fields of technology, information and communication.