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Market Chatter: Indonesian Lawmakers Propose Omnibus Bill to Shift State Investment Oversight to Danantara

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Indonesian lawmakers are looking into making revisions to multiple state finance laws under an omnibus bill, Reuters reported Monday, citing Mukhamad Misbakhun, head of the parliamentary financial ​commission.

The revision bill will reportedly be drafted to shift the management of state investments to sovereign wealth fund Danantara, from the finance minister previously, Misbakhun said.

As part of the move, dividends from state-owned firms may be redirected to Danantara instead of into the national budget, according to the report.

Fiscal deficit limits will not be the target of the revisions, according to the report citing the lawmaker. "We are not heading into that situation yet," he said.

Indonesia's parliament will finish modifications to the financial system law before starting work on the omnibus bill, according to the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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