Overview

Throughout President Joko Widodo’s two terms in office, the Indonesian Government has been largely focused upon improving the national economic climate through the implementation of various strategies aimed at attracting a greater number of investments to Indonesia. One recent strategy aimed at achieving this objective has been the passing of Law No. 11 of 2020 on Job Creation (“Job Creation Law”),[1] which simplifies a huge number of existing regulations and laws by bringing them together under a single framework while also introducing several new concepts which are expected to improve Indonesia’s investment climate. One of these newly introduced concepts is the Indonesia Sovereign Wealth Fund (Lembaga Pengelola Investasi – “LPI”), an agency that has been specifically tasked with the management of central government investments.[2]