JAKARTA – House of Representatives of Indonesia (DPR RI) will give votes for the State-owned Enterprises (SOE) Bill this Tuesday (4/2).

The law will allow the Indonesian government to establish Daya Anagata Nusantara Investment Management Agency (BPI Danantara). This investment agency is expected to boost state revenue.

After the bill is passed, BPI Danantara will receive capital injection amounting to IDR 1,000 trillion, equal to USD 60.86 billion, which will be channelled from state equity participation and other sources.

Subsequently, Danantara will establish two superholding entities that will manage several state-owned enterprises, as well as investment company that manages dividends and leveraged assets. Thus, it will also take over some of the Minister of SOE’s duties.

According to IDNFinancials data, several other countries have already established their state-owned investment agencies. For example, there are Singapore’s Temasek, Saudi Arab’s PIF (Public Investment Fund), Qatar’s QIA (Qatar Investment Authority), and China’s CIC (China Investment Corporation). (KR/ZH)