Indonesia says US-DFC will invest US$2bil in new sovereign wealth fund


JAKARTA, Nov 23 (Reuters): The US International Development Finance Corporation has signed a letter of intent to invest US$2 billion in Indonesia's new sovereign wealth fund, the South-East Asian country's government said in a statement on Monday.

The signing by DFC chief executive Adam Boehler took place in Washington last week, during a visit by Indonesian delegates, according to a statement by the Coordinating Ministry of Maritime Affairs and Investment.

The DFC would also engage with its partners in Japan, United Arab Emirates and Singapore to persuade them to invest in the soon-to-be-launched fund, officially named Indonesia Investment Authority, the ministry said.

The DFC was not immediately available for comment.

Earlier, Indonesia also announced that it has recorded a US$1 billion current account surplus in the July-September period, its first surplus since the third quarter of 2011, as movement curbs to control the coronavirus pandemic suppressed imports, Bank Indonesia said.

The third-quarter current account surplus was equal to 0.4% of gross domestic product (GDP), and followed a deficit of 1.2% of GDP in the previous three months, the central bank said in a statement.

South-East Asia's largest economy also recorded a surplus in its capital and financial accounts in the third quarter, bringing the balance of payments to a US$2.1 billion surplus.

The balance of payments' surplus in April-June was US$9.2 billion- Reuters

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