Indonesia to Create a Sovereign Investment Company
Indonesia is turning to Singapore’s Temasek Holdings Pte. as a model to create a sovereign investment company to drive development. The government is considering starting an investment holding company for four or five state-owned entities, which could then buy shares in Indonesian companies.
“A super-holding of our SOEs, that could be a very good sovereign wealth fund for Indonesia.”
~ Indonesia Finance Minister Bambang Brodjonegoro
“A super-holding of our SOEs, that could be a very good sovereign wealth fund for Indonesia,” Finance Minister Bambang Brodjonegoro said. “This process has to start.” State banks and energy firms may be possible targets for an investment holding company.
About Ministry of Finance of the Republic of Indonesia
In Indonesia, the history of financial manager has existed since ages ago. From the era of kingdom until the time being, Indonesia has had financial manager to be able to conduct the economic development in its governance. Government financial management covers all assets owned by Governments. The fund itself came from the society in the form of tribute, taxes, customs and excise, and others.
As a part of Indonesia government, Ministry of Finance is an institution, which has important role in conducting economic development. Economic development will run smoothly if it has good administration in managing State’s finance. The important role of the Ministry of Finance is managing State’s finance and assisting the leader in the state’s finance and asset. Therefore, the Ministry of Finance can be considered as the guard of state finance (Nagara Dana Rakca).
Incorporated in 1974, Temasek is an investment company based in Singapore. Supported by 10 offices globally, Temasek owns a S$266 billion portfolio as at 31 March 2015, mainly in Singapore and Asia. Temasek’s investment themes centre on: Transforming Economies; Growing Middle Income Populations; Deepening Comparative Advantages; and Emerging Champions. Its portfolio covers a broad spectrum of industries: financial services; telecommunications, media and technology; transportation and industrials; life sciences, consumer and real estate; as well as energy and resources.
Total shareholder return for Temasek since its inception in 1974 was 16% compounded annually. Temasek has had an overall corporate credit rating of “Aaa” by Moody’s and “AAA” by Standard & Poor’s since our inaugural rating in 2004.
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