Indonesia’s funding plan for new investment arm sparks backlash, transparency concerns
Indonesia's plan to fund its new sovereign wealth fund, Danantara, through significant austerity measures is facing public criticism due to concerns about transparency and potential corruption. The government intends to raise 750 trillion rupiah (US$44 billion) by cutting public sector budgets, impacting various ministries and agencies.
These budget cuts will affect spending on areas ranging from official travel to disaster prevention and civil servant wages, with 325 trillion rupiah earmarked for Danantara's investment arm. Danantara aims to generate higher returns from Indonesia's state-owned sector and attract foreign investment, managing over US$900 billion in assets. Critics are worried about the potential for unchecked political influence in managing these vast resources, especially given the limited success of Indonesia's first sovereign wealth fund established in 2021.
via SCMP Full Text Feed
Indonesia's plan to fund its new sovereign wealth fund, Danantara, through significant austerity measures is facing public criticism due to concerns about transparency and potential corruption. The government intends to raise 750 trillion rupiah (US$44 billion) by cutting public sector budgets, impacting various ministries and agencies.
These budget cuts will affect spending on areas ranging from official travel to disaster prevention and civil servant wages, with 325 trillion rupiah earmarked for Danantara's investment arm. Danantara aims to generate higher returns from Indonesia's state-owned sector and attract foreign investment, managing over US$900 billion in assets. Critics are worried about the potential for unchecked political influence in managing these vast resources, especially given the limited success of Indonesia's first sovereign wealth fund established in 2021.
via SCMP Full Text Feed
