Global Academy of Training and Research Journal

Share:

HTML |

DOI 10.35609/jber.2022.7.1(3)

Reference to this paper should be made as follows: Raharjo, A.W; Wiryono, S.K; Rahadi, R.A. (2022). Evolving Sovereign Wealth Fund under Infrastructure Funding Scarcity: A Literature Study, J. Bus. Econ. Review, 7(1), 75–91. https://doi.org/10.35609/jber.2022.7.1(3)

Received: April 13, 2022 | Accepted: June 30, 2022

Evolving Sovereign Wealth Fund under Infrastructure Funding Scarcity: A Literature Study
Aris Wahyu Raharjo, Sudarso Kaderi Wiryono, Raden Aswin Rahadi
School of Business Management Institut Teknologi Bandung, Bandung 40132, Indonesia Abstract

Objective - There are three primary focuses of this study, namely: to understand past literature on sovereign wealth fund (SWF) pattern of development, the impact of SWF investment on target firm financial performance, and how SWF fosters infrastructure development in Indonesia

Methodology/Technique - The methodologies of this study are descriptive and structured systematic reviews. Six dimensions were the focus of this literature review which are the basis for sorting and grouping the 1683 publication journals. Those six dimensions are SWF characteristics, SWF target firm characteristics, country characteristics, deal characteristics, research methods, and level of analysis

Findings - The SWF objectives and pattern of development in a country depending on the country-specific conditions which could evolve over time. There have been many past types of research on SWF development in different countries. Past research provided differing outcomes in various aspects of SWF development from one country to the others. In the case of Indonesia, INA is expected to provide global capital access in filling in the funding gap for Indonesia's infrastructure development. For that reason, this research is seeing an urgency to observe how Indonesia SWF manages its investment portfolio in unique infrastructure development and its impact on the national economic growth. Furthermore, past research findings described that the impact of institutional investors such as SWF on firm performance is still unclear. Many questions concerning the financial aspects of SWF's activities still remain relatively unanswered. The outcomes of this literature review provide multiple bases for future research with a mixed case study method.

Novelty - This research observes and compares various SWF patterns of development in different countries (multiple cases). Indonesia's SWF wealth fund was a newly established government agency and has not been widely explored in past research. How the government of Indonesia overcomes funding scarcity for infrastructure development provides a unique experience.

Type of Paper - Empirical

Keywords: Indonesia Sovereign Wealth Fund; Firm Value; Infrastructure Development; Structured Literature Review

JEL Classification: F30, M20.

URI: http://gatrenterprise.com/GATRJournals/JBER/vol7.1_3.html

DOI: https://doi.org/10.35609/jber.2022.7.1(3)

Pages 75–91

Price: USD 25