Japan will invest $4 billion in Indonesia's planned sovereign wealth fund through the Japan Bank for International Cooperation.
The amount is double the commitment provided by the U.S. International Development Finance Corp., according to Luhut Pandjaitan, Indonesia's minister of maritime and investment affairs, after a meeting with JBIC Gov. Tadashi Maeda.
The Nusantara Investment Authority, as the fund will be known, is set to start operating in early 2021 and is seeking to attract 225 trillion rupiah ($16 billion) in investments. President Joko Widodo is using the sovereign wealth fund to support the economy, with an aim to tame a spike in unemployment and climb out of a recession by year-end.
Mr. Pandjaitan and State-Owned Enterprises Minister Erick Thohir will head to Abu Dhabi and Saudi Arabia to seek more support for the fund. The government will issue detailed rules on the fund in mid-December, according to Mr. Thohir.