India-Indonesia Partnership: AMFI and AMII sign historic MoU in the investment management industry
MoU to promote and foster bilateral relations and cooperation between India and Indonesia and enhance industry standards and share industry practices
National, 25th January, 2025: In a significant move to foster bilateral collaboration, the Association of Mutual Funds in India (AMFI) and the Asosiasi Manajer Investasi Indonesia (AMII), the Indonesian Investment Managers Association have formalised an important step towards enhancing bilateral financial and economic best practises through cooperation by signing a Memorandum of Understanding (MoU) on January 25, 2025, in New Delhi, where a delegation of 12 top CEOs from Indonesia's mutual fund industry accompanied the Indonesian President on his state visit to India. 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.
The MoU will create a platform for India and Indonesia to exchange best practices, insights, and strategies aimed at boosting the mutual fund industries. The partnership will cover understanding and the need for a broad spectrum of areas, including requirements for regulatory reforms, governance standards, essential investor protection steps, data analytics, research, product innovation, and risk management ensuring that both countries benefit from each other's expertise and experiences.
As part of this historic event, AMFI hosted a Round Table for the visiting delegation of AMII, Indonesia, highlighting key aspects of the Indian economy's growth story, opportunities in the mutual fund sector, and the pivotal role of technology in driving the capital markets. The round table also explored emerging opportunities at GIFT City and emphasized India's leadership in financial innovation and governance.
The round table featured prominent speakers, including:
· Mr. Amitabh Kant, Sherpa, G20 and Former CEO of Niti Ayog
· Mr. Anuj Kumar, Managing Director, CAMS
· Mr. Hanif Mantiq, Chairman of AMII and CEO of Star AM, Indonesia
· Mr. Mohamad Oki Ramadhana, Commissioner of Indonesian Stock Exchange (IDX)
· Mr. Marsangap P Tamba, Chairman of APRDI and PWMII and Commissioner of PT Principal AM, Indonesia
On the momentous occasion, Mr. Navneet Munot, Chairman, AMFI commented "India's collaboration with Indonesia aligns with the vision of Viksit Bharat 2047, set forth by Hon'ble Prime Minister Shri Narendra Modi, and Indonesia's goal of achieving a developed economy by 2045, marking 100 years of their independence. This partnership resonates with India's commitment to the leadership of the Global South, fostering economic collaboration and mutual growth. 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. This collaboration will lay the foundation for a sustainable and globally competitive mutual fund industry in both countries."
Commenting further, Mr. Venkat Chalasani, Chief Executive, AMFI added "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"
The AMII delegation, which includes senior officials such as the Commissioner of the Indonesian Stock Exchange, the Chairman of AMII, and top leaders from Indonesia's asset management sector, will engage in discussions that promise to be instrumental in shaping the future of mutual funds in both countries. Through focused deliberations on industry governance, innovation, and operational excellence, the MoU will lay down a blueprint for progressive, cross-border cooperation.
Mr. Hanif Mantiq, Chairman of AMII, emphasized, "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."
The initiatives under this collaboration will include workshops, research, and capacity-building activities designed to educate and empower investors in both India and Indonesia, thus promoting responsible investment practices.
The MoU between AMFI and AMII will also establish working groups to focus on key areas of mutual interest. These groups will drive initiatives and conduct regular reviews to assess the partnership's progress, ensuring that the collaboration remains relevant and impactful for both nations. The partnership will serve as a gateway for further expansion, potentially leading to deeper ties between the two countries' financial markets.
