Indonesia aims to avoid 1MDB missteps with new sovereign wealth fund

Indonesian President Joko Widodo on Tuesday named a senior banker, Ridha DM Wirakusumah, as the chief executive of the country's new sovereign wealth fund, which has a target of managing US$20 billion (RM80.6 billion) and financing infrastructure projects.

Jokowi, as the president is popularly known, also named other professionals for posts on the board of directors of the fund, the Indonesia Investment Authority (INA).

The INA aims to attract foreign funds as co-investors, unlike sovereign wealth funds set up by other countries to manage oil revenue or foreign exchange reserves.

There has been scrutiny over the governance of INA particularly in the wake of a corruption scandal and massive losses involving neighbouring Malaysia's 1MDB fund...