Awaiting the Indonesia Investment Authority

What is the LPI? Quoted from Chapter X Article 157 of the Job Creation Law, the SWF known as the LPI is an investment authority specially formed by the government to invite domestic and foreign investors.

Kompas/AGUS SUSANTO

Aerial photo of an industrial area in West Cikarang, Bekasi Regency, West Java, Monday (17/8/2020). As a result of the Covid-19 pandemic, investment flows in Indonesia have experienced the lowest growth in the past decade.

At a virtual discussion on 20 October 2020, Deputy II of the State-Owned Enterprises Minister Kartika Wirjoatmodjo said the government had set the target of finishing the establishment of a sovereign wealth called Lembaga Pengelola Investasi (LPI/Indonesia Investment Authority) in January 2021.

After examining the government’s rhetoric lately, I’m trying to make a more specific analysis of the sovereign wealth fund (SWF)/LPI as stipulated in the omnibus Job Creation Law, Chapter X Article 165, and the direction of its development in the country.