Indonesia Investment Authority
{{Short description|Indonesian sovereign wealth fund}}
{{Infobox company
| name = Indonesia Investment Authority
| logo = Indonesia_Investment_Authority_Logo.svg
| native_name = {{lang|id|Lembaga Pengelola Investasi}}
| native_name_lang = id
| type = Sovereign wealth fund
| foundation = {{start date and age|df=yes|2021|2}}
| hq_location = Prosperity Tower
| location_city = Jakarta
| location_country = Indonesia
| key_people = Ridha D. M. Wirakusumah (CEO)
| equity = {{Unbulleted list|{{Increase}} Rp113.73 trillion (2023)|Rp96.95 trillion (2022)}}
| owner = Government of Indonesia
| revenue = {{Unbulleted list|{{Increase}} Rp5.42 trillion (2023)|Rp3.45 trillion (2022)}}
| net_income = {{Unbulleted list|{{Increase}} Rp5.61 trillion (2022)|Rp2.62 trillion (2022)}}
| assets = {{Unbulleted list|{{Increase}} Rp118.87 trillion (2023)|Rp99.85 trillion (2022)}}
| homepage = {{URL|https://www.ina.go.id/}}
| subsid = PT Rafflesia Investasi Indonesia
PT Abhinaya Investasi Indonesia
PT Swarna Investasi Indonesia
PT Akar Investasi Indonesia
PT INA DP World
}}
The Indonesia Investment Authority (INA; {{langx|id|Lembaga Pengelola Investasi}}, {{lit|Investment Management Agency}}, LPI) is the sovereign wealth fund of Indonesia.
History
{{Expand section|date=June 2024}}
The INA was launched in February 2021 as part of the Job Creation Law and is intended to attract investments, create jobs and to boost economic growth as well as to strengthen the country's economy by diversifying into new asset classes.{{cite news |last=Shofa |first=Jayanty Nada |date=February 16, 2021 |title=Indonesia's Sovereign Wealth Fund Unveils Initial Strategy to Attract Investors |url=https://jakartaglobe.id/business/indonesias-sovereign-wealth-fund-unveils-initial-strategy-to-attract-investors |access-date=24 March 2021 |newspaper=Jakarta Globe}}{{Cite web |title='Prioritized': Indonesia to establish $5b sovereign wealth fund to support economy - Business |url=https://www.thejakartapost.com/news/2020/10/08/prioritized-indonesia-to-establish-5b-sovereign-wealth-fund-to-support-economy.html |access-date=2025-01-10 |website=The Jakarta Post |language=en}}{{Cite web |last=Pakpahan |first=Manuel |date=2020-11-03 |title=Awaiting the Indonesia Investment Authority |url=https://www.kompas.id/baca/english/2020/11/03/awaiting-the-indonesia-investment-authority |access-date=2025-01-10 |website=kompas.id |language=id}} It has a target of managing $24.5 billion of assets. Unlike sovereign wealth funds of other countries which manage excess oil revenues or foreign exchange reserves, the INA seeks foreign funds as co-investors to finance the country's economic development.{{cite news |title=New Indonesia sovereign wealth fund eyes assets worth $2.6 bl |url=https://www.reuters.com/article/indonesia-swf-idUSL4N2L82G6 |access-date=24 March 2021 |newspaper=Reuters}}
In 2022, INA became a Full Member of the International Forum of Sovereign Wealth Funds non profit organization.{{cite news |author1=Ridha D.M. Wirahkusuma |year=2024 |title=Insight: Understanding sovereign wealth funds and their application in Indonesia |url=https://www.thejakartapost.com/opinion/2024/08/30/insight-understanding-sovereign-wealth-funds-and-their-application-in-indonesia.html |access-date=2025-01-10 |publisher=PT. Bina Media Tenggara |agency=thejakartapost.com}}{{Cite web |title=Legislation |url=https://www.ina.go.id/legislation |access-date=2025-01-10 |website=www.ina.go.id}} Also in 2022, INA founded its subsidiary PT Maleo Investai Indonesia.{{Cite web |title=What Did the INA, Indonesia's Sovereign Wealth Fund, Do in 2022? |url=https://thediplomat.com/2023/04/what-did-the-ina-indonesias-sovereign-wealth-fund-do-in-2022/ |access-date=2025-02-19 |website=thediplomat.com |language=en-US}} Other subsidiaries include PT Rafflesia Investasi Indonesia, PT Abhinaya Investasi Indonesia, PT INA DP World, PT Swarna Investasi Indonesia and PT Akar Investasi Indonesia.{{Cite web |title=Waskita Karya and INA to invest in the Trans Java toll road {{!}} IDNFinancials |url=https://www.idnfinancials.com/archive/news/44209/Waskita-Karya-and-INA-to-invest-in-the-Trans-Java-toll-road |access-date=2025-02-19 |website=www.idnfinancials.com}}{{Cite web |title=How the Indonesia Investment Authority Built Its Portfolio in 2023 |url=https://thediplomat.com/2024/04/how-the-indonesia-investment-authority-built-its-portfolio-in-2023/ |access-date=2025-02-19 |website=thediplomat.com |language=en-US}}{{Cite web |title=INA, Hutama Karya wrap up sale of Trans-Sumatra road sections - Companies |url=https://www.thejakartapost.com/business/2023/07/06/ina-hutama-karya-wrap-up-sale-of-trans-sumatra-road-sections.html |access-date=2025-02-19 |website=The Jakarta Post |language=en}}{{Cite web |title=Unlocking the Value of its Subsidiaries KF Conducts Share Transfers with AII and CIZJ |url=https://www.kimiafarma.co.id/en/read/unlocking-the-value-of-its-subsidiaries-kf-conducts-share-transfers-with-aii-and-cizj |access-date=2025-02-19 |website=kimiafarma.co.id |language=en}}
In 2023, the fund's net profit increased 64.1% from the previous year to 4.30 trillion rupiah with the revenue increasing by 57.1% to 5.42 trillion rupiah.{{Cite web |title=INA and co-investors invest 50.1 trillion rupiah since 2021 {{!}} Asia Asset Management |url=https://www.asiaasset.com/post/28560-ina2023ar-gte-0614 |archive-url=http://web.archive.org/web/20240703021354/https://www.asiaasset.com/post/28560-ina2023ar-gte-0614 |archive-date=2024-07-03 |access-date=2025-01-10 |website=www.asiaasset.com |language=en}}
Budget
INA had received commitments of up to $10 billion prior to its launch from global companies and agencies such as the U.S. International Development Finance Corporation and the Japan Bank for International Cooperation, as well as a few foreign pension funds.{{cite news |last=Bisara |first=Dion |date=24 March 2021 |title=UAE Unveils $10b Commitment to Indonesia's SWF, the Largest So Far |newspaper=Jakarta Globe |url=https://jakartaglobe.id/business/uae-unveils-10b-commitment-to-indonesias-swf-the-largest-so-far |access-date=24 March 2021}} The Indonesian government will support the fund with $5 billion in cash and other assets. The United Arab Emirates has announced a plan to invest $10 billion in INA.{{cite news|url=https://www.reuters.com/article/emirates-indonesia-investment-int/uae-to-invest-10-billion-with-indonesias-sovereign-wealth-fund-idUSKBN2BF0LM|title=UAE to invest $10 billion in Indonesia's sovereign wealth fund|newspaper=Reuters|access-date=24 March 2021}} For the financing of infrastructure projects, an additional US$4.2 billion has been allocated and added to the fund in November 2021.{{Cite web |date=2025-10-01 |title=Indonesia injects $4.2bn into sovereign wealth fund for infrastructure |url=https://www.pinsentmasons.com/out-law/news/indonesia-injects-usd4_2bn-into-sovereign-wealth-fund-for-infrastructure |access-date=2025-01-10 |website=Pinsent Masons |language=en-GB}}
Governance
INA reports directly to the President of Indonesia. The supervisory board is headed by the Finance Minister, the State Owned Enterprises Minister is also a member of the board.{{ref|jglobe1}}
=Board of directors=
- CEO - Ridha Wirakusumah{{cite news |last1=Aditya |first1=Arys |last2=Jiao |first2=Claire |title=Indonesia Names Wirakusumah to Helm $100 Billion Wealth Fund |url=https://www.bloomberg.com/news/articles/2021-02-16/indonesia-names-wirakusumah-as-ceo-of-100-billion-wealth-fund |access-date=8 April 2021 |work=Bloomberg |date=16 February 2021}}
- Deputy CEO - Arief Budiman{{Cite web |date=2021-02-18 |title=Indonesia's New Sovereign Wealth Fund: Professionals Provide Some Comfort, But Challenges Remain |url=https://fulcrum.sg/indonesias-new-sovereign-wealth-fund-professionals-provide-some-comfort-but-challenges-remain/ |access-date=2025-01-15 |website=FULCRUM |language=en-US}}
- Investment Director - Stefanus Ade Hadiwidjaja
- Risk Director - Thomas Sugiarto Oentoro{{Cite web |title=Thomas Sugiarto Oentoro {{!}} Chief Risk Officer {{!}} Indonesia Investment Authority |url=https://www.ina.go.id/board-of-directors/thomas-sugiarto-oentoro |access-date=2025-01-15 |website=www.ina.go.id}}
- Finance Director - Eddy Purwanto
=Supervisory Board=
- Chairwoman and Supervisor - Finance Minister Sri Mulyani (ex officio){{cite news |last1=Adyatama |first1=Egi |title=Jokowi Inaugurates Indonesia Investment Authority Supervisory Board |url=https://en.tempo.co/read/1427119/jokowi-inaugurates-indonesia-investment-authority-supervisory-board |access-date=8 April 2021 |work=Tempo.co |date=27 January 2021}}
- Supervisor - State Owned Enterprises Minister Erick Thohir (ex-officio)
- Supervisor - Darwin Cyril Noerhadi
- Supervisor - Erwandi Hendarta{{Cite web |date=2025-02-04 |title=Indonesia wealth fund INA names senior lawyer Erwandi Hendarta to supervisory board |url=https://www.asiaasset.com/post/29263-inaerwandi-gte-250203 |access-date=2025-02-26 |website=Asia Asset Management}}
- Supervisor - Hariyanto Sahari
Investments
From its implementation in 2021 until June 2023, more than $3 billion in capital has been invested by the fund, such as the $800 million into Mitratel in a partnership with the Abu Dhabi Investment Authority, the Abu Dhabi Growth Fund and the GIC. The INA also invested $150 million into Kimia Farma together with the Silk Road Fund, as well as $500 million into Pertamina Geothermal Energy together with Masdar and $300 million into Traveloka.{{Cite web |last=SimonHadley |title=Leveraging Indonesia's demographic dividend |url=https://www.omfif.org/44140-2/ |access-date=2025-01-15 |website=OMFIF |language=en-GB}}{{Cite web |title=INA seals 'good deal' in OTA business with $300m in funding for Traveloka - Sat, October 1, 2022 |url=https://www.thejakartapost.com/paper/2022/09/30/ina-seals-good-deal-in-ota-business-with-300m-in-funding-for-traveloka.html |access-date=2025-01-15 |website=The Jakarta Post |language=en}} The INA signed an investment pact in April 2022 for the development of toll roads located on Java and Sumatra.{{Cite web |title=Indonesia wealth fund agrees to invest $2.7bn in toll roads |url=https://asia.nikkei.com/Business/Finance/Indonesia-wealth-fund-agrees-to-invest-2.7bn-in-toll-roads |access-date=2025-01-15 |website=Nikkei Asia |language=en}} In June 2023, the INA partnered with MCUDI and ESR Group for investments into three logistic parks in Indonesia.{{Cite web |last=Ting |first=Yong Hui |date=2023-05-29 |title=Indonesia's sovereign wealth fund, ESR, Mitsubishi jointly investing in three Indonesian logistics parks |url=https://www.businesstimes.com.sg/international/asean/indonesias-sovereign-wealth-fund-esr-mitsubishi-jointly-investing-three |access-date=2025-01-15 |website=The Business Times |language=en}} According to Ministry of Foreign Affairs of Indonesia, INA has reached agreement with DP World from United Arab Emirates to develop and improving the infrastructures of Port of Belawan, Medan, in June 2023. This cooperation also involved Prima Terminal Petikemas Ltd, a subsidiary of Pelindo.{{Cite web |last=Nair |first=Arya M. |date=2023-06-23 |title=DP World & INA's consortium sign deal for Indonesia's seaport Management - GCC Business News |url=https://www.gccbusinessnews.com/dp-world-inas-consortium-sign-deal-for-indonesias-seaport-management/ |access-date=2025-01-16 |website=www.gccbusinessnews.com |language=en-US}}{{Cite web |title=DP World takes over operations at Belawan New Container Terminal |url=https://www.seatrade-maritime.com/terminals/dp-world-takes-over-operations-at-belawan-new-container-terminal |access-date=2025-01-16 |website=www.seatrade-maritime.com |language=en}} The INA acquired two Trans-Sumatra Toll Road portions for 12.5 trillion rupiah from PT Hutama Karya in July 2023.{{Cite web |title=Hutama Karya toll road acquisition: INA spends Rp12.5 trillion |url=https://www.pwc.com/id/en/media-centre/infrastructure-news/july-2023/hutama-karya-toll-road-acquisition-ina-spends-rp-12-point-5-trillion.html |access-date=2025-01-15 |website=PwC |language=en-id}}
The INA allocated 20% of its total investments into the new renewable energy sector in November 2023.{{Cite web |last=Isaac |first=Julian |date=2023-11-02 |title=The Indonesia Investment Authority (INA) allocated IDR 28 trillion of its total investment fund to new renewable energy sector accelerating Indonesia's energy transition |url=https://indonesiabusinesspost.com/risks-opportunities/the-indonesia-investment-authority-ina-allocated-idr-28-trillion-of-its-total-investment-fund-to-new-renewable-energy-sector-accelerating-indonesias-energy-transition/ |access-date=2025-01-16 |website=Indonesia Business Post |language=en-US}} In October 2024, the INA invested into two toll-road sections, bringing its new assets to about $1.4 billion.{{Cite web |date=2024-10-28 |title=Indonesian sovereign wealth fund INA's platform invests in Trans Sumatra Toll Roads |url=https://www.reuters.com/markets/asia/indonesian-sovereign-wealth-fund-inas-platform-invests-trans-sumatra-toll-roads-2024-10-28/ |access-date=2025-01-16 |website=Reuters}}
See also
{{Portal|Indonesia}}