Toward transparency : a study on the governance of investment infrastructure funds in transportation projects in Indonesia

Abstract

This research examines information transparency on the governance of infrastructure investment funds in Indonesia, including the contrast with the concepts of collective investment schemes, European Long-Term Investment Fund, and infrastructure funds in Thailand. The hypothesis of this study is that the regulatory framework of infrastructure investment funds in Indonesia is less comprehensive in enabling the availability and clarity of information for investors’ informed decisions, compared to such concepts. Correspondingly, it finds that information asymmetry occurred due to minimal access and amount of information for assessment. The parties interested in this transaction tend to withhold their key concerns or disseminate them in different timeframes. Since the problems may lead to further consequences to the fund management and operation, improving transparency performance is imperative. Significant countermeasures are proposed to overcome the research problems, aiming to foster investor protection and sounder governance practice.