Cup SWF growth

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Danantara, a new sovereign wealth fund in Indonesia, is a project to overcome the ambition. In societies, $ 900 billion in assets, this is a year of the state budget, as a year, mines, battery factories and data centers, Priorities for Practical Prabowo Subianto – where and how to placement of the capital. There must be a player in global capital markets for several years. Remember the name: Danantara. It’s likely to hear a lot of time.

It is more doubt that the project is not in harmony with the wisdom of the ambition. Danantara has no macroeconomic purpose. On the contrary, this is one of the new sex as the UK’s national wealth fund and the possible US fund of music. Everyone wants sovereignty. Everyone wants wealth. A fund is a gentle road, so unfortunately, not a reliable way to create them.

Review many cases that make sense of a sovereign wealth fund. The first prevents the exchange rate from natural resources as oil as oil as oil, and thus prevents the exchange rate assessment by the so-called “Dutch disease”. The Norwegian Foundation is the world’s largest, open example.

Second, when times are good, when times are good, when the times are bad, to get rid of the times when they are stable. Chile has such a means.

Third to return the funded public pension system. In order to support pensioners, smart, collected real assets are collected countries can build a vehicle and increase income to invest in abroad. The Government Pension Investment Fund is like this in Japan.

The fourth and more suspects are to be considered to reduce currency value. In order to lead exports, a country that keeps the currency inexpensive, resulting in the result, must sterilize and collect foreign exchange reserves. It is a polite thing to glue them in a SWF and the origin of China’s megafunds.

The macroeconomic environment of the macroeconomic environment of 2010, the macroeconomic environment with chronic low interest rates, said a number of ideas for SWFS. Economist Roger Farmer The British Foundation has offered Active Price Wants to stabilize variations. Others Suggested funds This will borrow the lowest prices to invest in productive assets. Nothing never came out of the ground, but they were solving certain problems.

It is difficult to find macroeconomic logic in the latest iterations. The British Foundation says the billions of billions of billions that remove the goal of the goal: it is a development bank in disguise not really a SWF. There is nothing wrong with Development Banks. The Peniter has an ideological allergy to the Holine of the British state, Margaret Tetcher, and anyone waiting for the net worth to collect net value will be disappointed.

Danantara can also come out in a Development Bank. According to the goal, the General Investment Officer Pandu Sjahrir“All enterprises in all state enterprises in Indonesia are ridiculed by the Ministry of Government. It will be a fewer government bureaucracy and less government control.

This is the fall of the work for Danantara. In many companies, many companies are worried about their leaderships, which have minority minorities. Jumps with Indonesia’s economy Rupiah falls Last week, 1998 Asian financial crisis, partly due to the concerns of Prabowon’s financial policy. The president is a Chinese style to mobilize deposits to save a place for social spending, partially SWF, so it is a Chinese style to mobilize savings. In the network, Danantara’s investment in Indonesia is not clear. The country has already been very good in infrastructure.

This is a leaf for a sixth reason to create a SWF: a box, especially it is very nice to be a box with a lot of money inside. The creation of the box is an achievement that a politician can point. It is exciting for people who drive it. The box can be used to solve problems, political, economic and otherwise. The box can be benign – Smart, Interestless, long-term investment by Danantara helps Indonesia to create a more prosperous place. Or the box, the Malaysian Foundation, a Malaysian Foundation, which is a Malaysian fund, which is a Malaysian fund, which is a Malaysian fund, which is a Malaysian fund.

The difference between the two outcomes is management. Pandu, Danantara will meet the highest transparency standards, and it appointed a magnificent fog, including Bridgewater Associates, who connects his good names and reputation. Now it is a hard responsibility to make sure that the money is well invested. As soon as the Indonesian economy has changed, do not expect a lot.

Robin.Harding@ft.com