Abstract
As a new institution in Indonesia, Sovereign Wealth Fund need to be equipped with a solid legal basis and supported by international standard governance. As a form of the Government's commitment to accelerate the operationalization of this Institution, the Government has established 3 (three) legal products related to the Investment Management Agency. The first legal product in Government Regulation (PP) Number 73 of 2020, Government Regulation Number 74 of 2020, and Presidential Decree Number 128/P of 2020 concerning the Establishment of the Selection Committee for the Selection of Candidates for the Sovereign Wealth Fund Supervisory Board from Professional Elements. This research aims to identify two aspects related to the position of Sovereign Wealth Fund in Indonesia and assess whether the existence of the above legal products is a form of law enforcement against Sovereign Wealth Fund in Indonesia with international standards. The study results indicate that the legal position of the Sovereign Wealth Fund (LPI) can be equated with similar institutions that have previously been established, such as State-Owned Enterprises and the Investment Coordinating Board. The regulation of investment management institutions in the work copyright law still has weaknesses, namely from supervision.
Highlights
As a new institution in Indonesia, Sovereign Wealth Fund need to be equipped with a solid legal basis and supported by international standard governance
In accordance with the agreed form, Indonesia is a state of law, so the policies made, implemented, and established based on the provisions of applicable legal norms to realize the main social justice mind and one of the goals of strengthening the national economy, as stated in the Opening of the Indonesian Republic State Constitution in 1945 the most important thing that needs to be done is to lay the foundation of a strong national economy, especially in dealing with the world economic situation with high dynamics and volatility
Chapters on national strategic investments and projects, for example, clearly show how corrupt practices can occur. This provision states that central government investment is made to increase investment and strengthen the economy to support strategic Job Creation Law policies
Summary
As a new institution in Indonesia, Sovereign Wealth Fund need to be equipped with a solid legal basis and supported by international standard governance. The strong national economic foundation is a starting point for the realization of Vision Indonesia 2045, which is a country with high economic growth and become one of the world's great economic powers This vision will be achieved with the support of 4 (four) pillars, namely human resource development and mastery of science and technology, sustainable economic development, equitable development, as well as national resilience and governance. The limited fiscal capacity of the Government and the limited funding of state-owned enterprises and financial sector institutions indicate that domestic capacity is inadequate to meet all development financing needs to support economic growth. With regard to these issues, it is necessary to fulfill national development financing involving investors from abroad, especially through foreign direct investment (FDl). There is currently a need for an institution that is able to become a strategic partner for the investor, which has a strong legal and institutional foundation and applies international practices and standards, which can be an intermediary for investors in placing investments or FDI in Indonesia (Anisa, 2020)
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