Chairman of the National Economic Recovery and Transformation Task Force, Budi Gunadi Sadikin, on Wednesday justified the decision to tweak the National Economic Recovery budget to include funding for a sovereign wealth fund (SWF).
"In terms of the sovereign wealth fund, as directed by the President, especially for corporation funding, stimulus is given to boost investment for corporations in Indonesia," he said at a press conference in Jakarta on Wednesday.
He said SWF is an instrument that will lead to the development of corporations in Indonesia by attracting investment from foreign investors, which means the SWF is also a form of stimulus for corporations.
He explained that investment, in this regard, means shares or ownership investment, rather than loans where the funds will need to be returned eventually.
"For that reason, we see that an investment mechanism from foreign countries during such a tough time can be helpful in elevating Indonesia's investment profile, as well as the country's work field, which is needed by a lot of people," he said.
He also gave reasons for making a number of reallocations in the national economic recovery budget at the press meet.
In accordance with the President's directives, economic programs that are being carried out need to also be able to absorb labour and move circularly amid the pandemic, he said.
The task force sees an opportunity for this in the agriculture sector, specifically food estates, he added.
"This is why food estates (have been included in the national economic recovery budget). As this (pandemic) continues to go on, and frankly, the agriculture and fishery sectors are among those that absorb the most labour in Indonesia, especially from the very bottom," he said.
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