What is Nusantara Investment Authority (NIA)?
NIA is an institution established as mandated by the Job Creation Law, to manage and place assets through direct or indirect investment, collaborating with third parties, or through the formation of special entities.
NIA aims to increase and optimize the value of the investment that is managed in the long term to support sustainable development.
The Investment Management Institution, hereinafter referred to as the Indonesia Nusantara Investment Authority (NIA), is an institution established based on Law Number 11/2020 concerning Job Creation and given special authority (sui generis) in the context of managing central government investment.
What is the urgency for establishing NIA?
NIA was established as a solution to the future needs for infrastructure and development financing in Indonesia. This institution is needed as an effort to increase Foreign Direct Investment (FDI), as well as an alternative to financing other than debt and a solution to the limited financing capacity of SOE.
Are NIA shares owned by the Government of Indonesia?
NIA is 100% owned by the Government of Indonesia. NIA's capital comes from state equity participation from cash, government asset, state receivables, and state-owned shares in SOE. Also, NIA's capital can come from other sources, including the capitalization of retained earnings on NIA's investment results.
What is the purpose, function, and authority of the establishment of NIA?
NIA aims to increase and optimize the investment value that is managed in the long term to support sustainable development.
NIA objectives is to manage central government investment, and is tasked with planning, organizing, supervising and controlling and evaluating investment.
In carrying out these functions and tasks, NIA is authorized to invest in financial instruments, carry out asset management activities, collaborate with other parties including trust fund entities, determine potential investment partners, provide and receive loans, and /or administer assets of NIA.
Where is the source of NIA's capital?
NIA's capital comes from state capital participation from cash, state asset, state receivables, and state-owned shares in SOE. In addition, NIA's capital can also come from other sources, namely the capitalization of retained earnings on NIA's investment results.
How much is NIA's capital?
As stated in the Job Creation Law, NIA's initial capital is set at least IDR 15 trillion in cash. However, according to the RPP NIA prepared, NIA's capital is planned to exceed Rp. 75 trillion according to the Government decree) to increase interest and provide more confidence to investors. Fulfillment of NIA's capital will be carried out in stages according to the government's fiscal policy and capacity. Meanwhile, State Capital Participation in NIA is stipulated by Government decree.
What is the concept of NIA's investment placement?
NIA's investment placement takes into account two things, namely (1) increasing and optimizing the value of state investment, and (2) (supporting) sustainable development. In carrying out these two missions, NIA can invest directly or indirectly, collaborate, or form a fund (either self-established or in collaboration with other investors).
Which sectors will NIA invest in?
For now, the domestic infrastructure sector is still the main choice, because in addition to being a priority for Indonesia's development, foreign investor interest in this is also quite high. However, beyond that, NIA can also invest in financial instruments.
What are the criteria for determining / selecting projects to place NIA investments?
The selection of the project depends on the investment policy of the investment managed fund (fund) that is formed by NIA or NIA with investors (co-investment), among others, is related to the sector and investment yield.
Who will audit the financial statements?
The financial statements are audited by a public accounting firm registered with the Supreme Audit Agency of the Republic of Indonesia and the Financial Services Authority.
What is the organization of NIA and to whom is NIA responsible?
NIA is an Indonesian legal entity that is fully owned by the Indonesian government. NIA is responsible to the President. NIA accountability report to the President is prepared by the Supervisory Board and the Board of Directors.
What is the organizational structure of NIA?
NIA consists of a Supervisory Board and a Board of Directors. The Supervisory Board is in charge of supervising the operational management of NIA which is carried out by the Board of Directors. The Supervisory Board consists of: Minister of Finance as Chairman; Minister of BUMN as member; and 3 (three) people who come from professional elements as members. The Board of Directors consists of 5 (five) people, all of whom come from professional elements. One of the members of the Board of Directors is appointed as Chairman of the Board of Directors.