The Association of Mutual Funds in India (AMFI) and the Asosiasi Manajer Investasi Indonesia (AMII), the Indonesian Investment Managers Association, signed a Memorandum of Understanding (MoU) on Saturday to strengthen bilateral relations and enhance cooperation between the mutual fund industries of India and Indonesia.
The MoU was signed and exchanged between Navneet Munot, Chairman, AMFI and Hanif Mantiq, Chairman of AMII and CEO of Star AM, Indonesia in the capital in the presence of Amitabh Kant, Sherpa, G20 and Former CEO of NITI Aayog.
A delegation of 12 top CEOs from Indonesia’s mutual fund industry — who are accompanying the Indonesian President Prabowo Subianto on his ongoing state visit to India—were also present on the MoU signing ceremony.
This is the first time a capital markets delegation is travelling along with visiting Indonesian President Prabowo Subjanto, who will be the Chief Guest at India’s Republic Day celebrations on Sunday.
While the Indian mutual funds industry currently has an assets under management of about $800 billion ( grown at whopping pace in the last ten years from about $100 billion in 2014), the Indonesian mutual funds industry currently is having an AUM of about $60 billion.
Speaking on the occasion, Navneet Munot said “We are going to work closely. India’s collaboration with Indonesia aligns with the vision of Viksit Bharat 2047, set forth by Prime Minister Narendra Modi, and Indonesia’s goal of achieving a developed economy by 2045, marking 100 years of their independence. This collaboration will lay the foundation for a sustainable and globally competitive mutual fund industry in both countries”.
‘Crucial role’
This partnership resonates with India’s commitment to the leadership of the Global South, fostering economic collaboration and mutual growth, he added. “A strong capital market and a thriving asset management industry, as exemplified by the success of India’s mutual fund sector, will play a crucial role in achieving these milestones”, Munot added.
Hanif Mantiq, Chairman of AMII, said, “This is a pivotal moment in the global mutual fund landscape. By learning from each other’s regulatory frameworks and governance structures, we will be able to offer our investors greater security and innovation in the years to come. The collaboration with AMFI will serve as a model for strengthening the bond between the financial sectors of emerging markets.”
This partnership is set to strengthen the mutual fund sectors in both countries, enrich industry standards and promote investor education and financial literacy, paving the way for a more dynamic, transparent and globally integrated mutual fund ecosystem.
Venkat Chalasani, Chief Executive, AMFI said, “This collaboration signifies a crucial milestone in the growth of the mutual fund industry in both India and Indonesia. By working together, we are creating a unique opportunity to enhance understanding of market-led financial industry, standards of governance, boost investor confidence and drive innovation”. This MoU will facilitate knowledge exchange between the two countries through the industry bodies, he added.
