Investment Policy Statement as an Embodiment of Governance Mechanisms: Indonesian Sovereign Wealth Funds Context
(Pages 2312-2325)Raden Edi Sewandono1, Satya Arinanto2, Agus Yudha Hernoko3 and Mohamad Dian Revindo4
Universitas Indonesia, Sekolah Kajian Stratejik dan Global.
DOI: https://doi.org/10.55365/1923.x2023.21.247
Abstract:
Investment of Sovereign Wealth Funds are getting challenging and tremendous globally. We scrutinize the problem of governance the Sovereign Wealth Fund (SWF) which start from asymmetric information, then describes the governance approach to manage the broader investment mechanisms of the SWF. This paper examines the main aspects of investment information sharing which preferably concern SWF investment governance to create an excellent order to reduce asymmetric information. By using qualitative research, approaching the signalling theory proposes governance mechanisms of information to respond asymmetries information. By providing a solution in the form of governance mechanisms of SWF through prudent authority, we outline suggestions for prudential authority as an idea that implements the Indonesia Investment Authority (INA) encouraging investment policy statement as an embodiment of governance mechanisms to improve good performance of sovereign wealth fund.
Keywords:
Sovereign Wealth Fund; Asymmetric Information;Signaling theory; Governance Mechanisms; Investment Policy Statement.
How to Cite:
Raden Edi Sewandono, Satya Arinanto, Agus Yudha Hernoko and Mohamad Dian Revindo. Investment Policy Statement as an Embodiment of Governance Mechanisms: Indonesian Sovereign Wealth Funds Context. [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a247/
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