Indonesian government injects another 60 trillion rupiah into wealth fund INA

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The Indonesian government has injected another 60 trillion rupiah (US$4.18 billion) into Indonesia Investment Authority (INA), its nine-month-old sovereign wealth fund, boosting the total state funding to 75 trillion rupiah.

INA says the fresh funding comprises 45 trillion rupiah in equity from state-controlled lenders Bank Mandiri and Bank Rakyat Indonesia, and 15 trillion rupiah from the government’s 2021 budget.

“The injection reduces the government’s stake in Bank Mandiri and Bank Rakyat Indonesia to 52% each, from previously 60% shareholding in Bank Mandiri and 56.75% shareholding in Bank Rakyat Indonesia,” the wealth fund says in a statement on November 13.

According to INA, the move is part of a commitment from the government to inject 75 trillion rupiah into the fund this year to help finance infrastructure, tourism and technology projects, including the planned relocation of Indonesia’s capital from Jakarta to East Kalimantan.

INA signed two preliminary agreements last month with state-owned company PT Angkasa Pura II to develop the Soekarno-Hatta Airport, the country’s biggest international airport, and make it more competitive with regional and global peers.

The government set up INA in February with an initial capital of 15 trillion rupiah.

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