Indonesia $10.5 Billion Sovereign Wealth Fund Indonesia Investment Authority (INA) & $525 Billion Alternative Asset Manager Ares Management Form Partnership to Invest in Indonesia via Innovative Finance Structure Including Hybrid Capital Solutions (HCS) & Securitization, Ares Asia Credit Funds Commits $500 Million Annually
8th March 2025 | Hong Kong
Indonesia $10.5 billion sovereign wealth fund Indonesia Investment Authority (INA) & $525 billion alternative asset manager Ares Management have formed a partnership to invest in Indonesia via innovative finance structure including Hybrid Capital Solutions (HCS) & Securitization, with Ares Asia Credit Funds committing up to $500 million annually in this partnership. Announcement (6/3/25): “The Indonesia Investment Authority (“INA”) and a subsidiary of Ares Management Corporation (NYSE: ARES) (Ares) have entered into an Investment Framework Agreement (IFA) to foster investments through innovative financing mechanisms such as Hybrid Capital Solutions (HCS) and securitization. This collaboration aims to unlock sustainable investment flows while supporting projects that leverage both INA’s and Ares’ experience to create sustainable and impactful outcomes for Indonesia’s economy. Ares Asia Credit funds have committed to exploring investment opportunities up to USD 500 million annually, demonstrating the scale and ambition of this collaboration. The IFA outlines a collaborative, mutually agreed framework for INA and Ares to explore tailored investment opportunities that allow for more optimal capital structures to advance Indonesia’s financial ecosystem through sustainable growth and economic resilience. INA and Ares aim to deploy capital to achieve optimal risk-adjusted returns that leverage the investment expertise and networks of both organizations. Ares’ experience in structured finance combined with INA’s in-depth local insights is poised to deliver meaningful economic impact. Ares stands as one of the largest credit-focused alternative investment managers in APAC. As of December 31, 2024, the Ares Credit Group managed USD 348.8 billion in assets under management, with the Ares Asia Credit platform overseeing USD 11.5 billion. This strong regional presence positions Ares as a strategic investor in supporting the advancement of Indonesia’s financial ecosystem through innovative capital deployment strategies … …. Aligned with INA’s broader mission to attract foreign direct investment and catalyze economic growth, this partnership leverages Ares’ ability to fundraise third-party capital both across Asia and globally, creating a direct impact on capital flowing into Indonesian investments and amplifying INA’s role as a co-investor. Ares brings an invaluable network that should support the inflow of foreign direct investment into Indonesia while strengthening INA’s ability to engage in innovative investment strategies. Additionally, the collaboration provides an opportunity for INA to deepen its knowledge in securitization by drawing on Ares’ experience globally in alternative credit.” In 2024 December, Indonesia Investment Authority (INA) & $3.6 billion Norway Norfund have signed an Investment Framework Agreement (IFA) to explore joint investments via deals or funds to support sustainable development in renewable energy, financial inclusion & green infrastructure sectors. In 2024 June, Indonesia Investment Authority (INA) & co-investors have deployed $1.9 billion investment in 2023 and $3.2 billion since launch in 2021. In 2023 July, Indonesia Investment Authority (INA) and British International Investment (BII) with $10.4 billion AUM (£8.1 billion) have formed a partnership to focus on Indonesia investments in green infrastructure, renewable energy, climate resilience & related sectors, with British International Investment announcing earlier in 2022 to invest $642 million (£500 million) in Southeast Asia to support Southeast Asia green energy transition from 2022 to 2026.
“ Indonesia $10.5 Billion Sovereign Wealth Fund Indonesia Investment Authority (INA) & $525 Billion Alternative Asset Manager Ares Management Form Partnership to Invest in Indonesia via Innovative Finance Structure Including Hybrid Capital Solutions (HCS) & Securitization, Ares Asia Credit Funds Commits $500 Million Annually “
Ridha Wirakusumah, CEO of INA: “This collaboration with Ares represents a significant step in INA’s efforts to strengthen the implementation of innovative financing practices such as Hybrid Capital Solutions and securitization. Together we aim to establish a stronger track record and knowledge base while leveraging global expertise to unlock scalable investment opportunities. This collaboration reflects a shared commitment to deploying capital effectively and creating innovative and sustainable solutions for Indonesia’s financial ecosystem.”
Edwin Wong, Partner and Head of Ares Asia: “With the largest economy in Southeast Asia, Indonesia is a key market for Ares’ Southeast Asia franchise. We have been actively investing in the country for more than two decades. We believe partnering with reputable institutions like INA should accelerate the growth and impact we aim to achieve.”
Eric Vimont, Partner and Head of Strategy of Ares Asia: “As Ares looks to scale our presence in Asia Pacific, we see attractive investment opportunities in Indonesia. Alongside INA, we look forward to leverage our experience in private credit and securitization, bringing more innovative financing solutions to the Indonesian market that can help support sustainable economic growth.”
Indonesia Investment Authority (INA) – Indonesia Investment Authority is Indonesia’s sovereign wealth fund mandated to increase investment to support the country’s sustainable development and build wealth for its future generations. INA conducts investment activities and collaborates with leading global and domestic investment institutions in sectors that strengthen Indonesia’s advantages and provide optimal risk-adjusted returns.
Ares Management – Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of December 31, 2024, including the acquisition of GCP International which closed on March 1, 2025, Ares Management Corporation’s global platform had over $525 billion of assets under management, with operations across North America, Europe, Asia Pacific and the Middle East.
Indonesia $10.5 Billion Sovereign Wealth Fund Indonesia Investment Authority (INA) & $3.6 Billion Norway Norfund Sign Investment Agreement to Explore Joint Investments via Deals or Funds to Support Sustainable Development in Renewable Energy, Financial Inclusion & Green Infrastructure Sectors
15th December 2024 – Indonesia $10.5 billion sovereign wealth fund Indonesia Investment Authority (INA) & $3.6 billion Norway Norfund have signed an Investment Framework Agreement (IFA) to explore joint investments via deals or funds to support sustainable development in renewable energy, financial inclusion & green infrastructure sectors. Announcement (2/12/24): “Indonesia Investment Authority (INA) and Norfund, the Norwegian Investment Fund for Developing Countries, have signed an Investment Framework Agreement (IFA) to explore joint investment opportunities in Indonesia. This partnership underscores the mutual commitment of both institutions to support sustainable development in the renewable energy, financial inclusion, and green infrastructure sectors. The agreement outlines a framework for collaboration that includes both direct joint investments on a deal-by-deal basis and joint investments in funds. Through this partnership, INA and Norfund aim to leverage their combined resources, networks, and expertise to identify and catalyze impactful investments that align with Indonesia’s development priorities. INA’s focus on green energy and transformation, established as one of its priority investment sectors, aligns with the objectives of this partnership. INA has been committed to supporting Indonesia’s expansion of renewable energy, as demonstrated by its first strategic investment in green energy last year through PT Pertamina Geothermal Energy Tbk (PGE), the largest geothermal energy company in Indonesia. Norfund, owned and funded by the Norwegian Ministry of Foreign Affairs, aims to promote sustainable businesses in developing countries. With a committed portfolio of USD 3.6 billion, Norfund operates under two key mandates: the Development Mandate and the Climate Mandate. The latter, launched in 2022, prioritizes investments in renewable energy with a large climate impact, with USD 400 million already committed globally by mid-2024. By mid-2024, Norfund has invested USD 66 million in Indonesia under both mandates. This strong foundation provides a pathway for scaling investments and attracting additional international co-investment partners, including those from Europe and the United States. Through this partnership, INA and Norfund can leverage each other’s strengths to pursue impactful and economically sound investment opportunities. Norfund’s established pipeline of projects and its connections with members of the Association of European Development Finance Institutions (EDFI), offer valuable pathways for collaboration. At the same time, INA’s understanding of Indonesia’s investment landscape and its commitment to advancing green energy provide a strong foundation for joint initiatives that align with both institutions’ priorities. This partnership reflects a shared vision to address critical global challenges, including the transition to net zero and sustainable economic growth. Norfund’s mission to create jobs, improve lives, and drive climate-focused investments complements INA’s commitment to advancing its priority sectors, including supporting Indonesia’s energy transition, renewable energy development, and strengthening long-term economic resilience. Through this collaboration, the two institutions aim to contribute meaningfully to a more sustainable and inclusive future for Indonesia.” In 2024 June, Indonesia Investment Authority (INA) & co-investors have deployed $1.9 billion investment in 2023 and $3.2 billion since launch in 2021. In 2023 July, Indonesia Investment Authority (INA) and British International Investment (BII) with $10.4 billion AUM (£8.1 billion) have formed a partnership to focus on Indonesia investments in green infrastructure, renewable energy, climate resilience & related sectors, with British International Investment announcing earlier in 2022 to invest $642 million (£500 million) in Southeast Asia to support Southeast Asia green energy transition from 2022 to 2026.
Ridha Wirakusumah, CEO of INA: “This is a strategic step in advancing investments that reflect Indonesia’s priorities in renewable energy and sustainable infrastructure, which are also core focus areas for INA. Norfund’s existing portfolios and experience in Indonesia, particularly in the renewable energy sector, provide opportunities to scale impactful projects, attract additional investment through their co-investor network, and create a potential multiplier effect for foreign direct investment in the near term as Indonesia remains a core market for the capital deployment … … INA can also draw significant value from Norfund’s expertise, honed over decades of global investments. Their disciplined approach to structuring and scaling investments, as well as their proficiency in project selection, risk management, and partnership building, complements INA’s understanding of Indonesia’s investment landscape and our commitment to supporting the energy transition.”
Tellef Thorleifsson, CEO of Norfund: “Our experience is that Norfund’s investments in job creation and the energy transition are most effective when we succeed in both mobilizing additional capital and leveraging local expertise. Indonesia will be an important market for us in the coming years, and we believe that our partnership with INA will make it possible for us to make a larger impact through future investments in the country.”
Indonesia Investment Authority (INA) – Indonesia Investment Authority is Indonesia’s sovereign wealth fund mandated to increase investment to support the country’s sustainable development and build wealth for its future generations. INA conducts investment activities and collaborates with leading global and domestic investment institutions in sectors that strengthen Indonesia’s advantages and provide risk-adjusted optimal returns.
Norfund – Norfund is the Norwegian Investment Fund for developing countries with a mission to create jobs and improve lives by investing in businesses that drive sustainable development. Owned and funded by the Norwegian Government, Norfund is the Government’s most important tool for strengthening the private sector in developing countries and reducing poverty. Norfund’s committed portfolio amounts to USD 3.6 billion, with investments across Sub-Saharan Africa, South/Southeast Asia, and Latin America.
Indonesia $10.5 Billion Sovereign Wealth Fund Indonesia Investment Authority (INA) & Co-Investors Deployed $1.9 Billion in 2023 & $3.2 Billion Since Launch in 2021, Asset Allocation of 86.3% in Infrastructure, 13.9% in Private Equity, Public Equity & Hybrid Capital Solutions, Sector Allocation of 47.7% in Transport & Logistics, 33.5% in Digital Assets, 14.5% in Green Energy & 4.4% in Healthcare
19th June 2024 – Indonesia $10.5 billion sovereign wealth fund Indonesia Investment Authority (INA) & co-investors have deployed $1.9 billion investment in 2023 and $3.2 billion since launch in 2021. Indonesia Investment Authority (INA) Asset Allocation – 86.3% in infrastructure, 13.9% in private equity, public equity & hybrid capital solutions. Sector Allocation – 47.7% in transport & logistics, 33.5% in digital assets, 14.5% in green energy & 4.4% in healthcare. View Indonesia Investment Authority (INA) 2023 Report here. In 2023 July, Indonesia Investment Authority (INA) and British International Investment (BII) with $10.4 billion AUM (£8.1 billion) have formed a partnership to focus on Indonesia investments in green infrastructure, renewable energy, climate resilience & related sectors, with British International Investment announcing earlier in 2022 to invest $642 million (£500 million) in Southeast Asia to support Southeast Asia green energy transition from 2022 to 2026. More info below:
$20 Billion Sovereign Wealth Fund Indonesia Investment Authority & $10.4 Billion British International Investment Form Partnership to Focus on Indonesia Investments in Green Infrastructure, Renewable Energy, Climate Resilience & Related Sectors, British International Investment to Invest $642 Million in Southeast Asia to Support Green Energy Transition from 2022 to 2026
21st July 2023 – Indonesia sovereign wealth fund Indonesia Investment Authority (INA) with $20 billion AUM (Assets under Management) and British International Investment (BII) with $10.4 billion AUM (£8.1 billion) have formed a partnership to focus on Indonesia investments in green infrastructure, renewable energy, climate resilience & related sectors, with British International Investment announcing earlier in 2022 to invest $642 million (£500 million) in Southeast Asia to support Southeast Asia green energy transition from 2022 to 2026. Indonesia Investment Authority (INA): “The partnership, which has been formalized through the execution of an Investment Framework Agreement (“IFA”) between the two entities, will focus specifically within the spheres of green infrastructure, renewable energy, climate resilience and adaptation and related sectors .. …. The partnership underlines the synergy between INA’s dedication and BII’s investment focus to mobilize capital and catalyse select green sectors in Indonesia to achieve development objectives on improved productivity, sustainability and inclusion. Through this IFA, the parties intend to create a more enabling environment for facilitating investments and partnerships in private sector businesses in Indonesia. Leveraging their combined strengths, experience, networks and a shared vision, the partnership is poised not only to seek optimal risk-adjusted returns on invested capital, but also to cultivate sustainable economic growth and address global climate challenges. INA has designated green energy and transformation as one of its priority investment sectors, focusing on supporting the energy transition toward renewable energy in Indonesia. Earlier this year, INA made its first strategic investment in green energy through PT Pertamina Geothermal Energy (PGE), the largest geothermal energy company in Indonesia. Additionally, INA joined forces with Contemporary Amperex Technology Co., Limited (CATL) to establish a Green Electric Vehicle (EV) Fund that will concentrate on end-to-end EV value chain investment, primarily in Indonesia, reflecting INA’s dedication to support Indonesia’s sustainability and commitment to net zero carbon emissions by 2060. Moreover, INA is marking its commitment in the energy transition mechanism (ETM) working together with Asian Development Bank (ADB) for pilot project, and PT Cirebon Electric Power (CEP), for supporting the energy transition in Indonesia by phasing out coal-fired power plants.” See below for more info.
Ridha Wirakusumah, Indonesia Investment Authority CEO: “This partnership marks a significant step in INA’s mission to serve as a catalyst for Indonesia’s future growth and prosperity. Collaborating with a leading development finance institution like BII strengthens our dedication to supporting sustainable development throughout Indonesia. This strategic alliance will bolster our commitment to green investment, which is pivotal for sustainable and inclusive growth. BII’s wealth of knowledge, experience, and resources in this area serve as an impetus for INA to enhance our investment capabilities and impact. By leveraging our combined strengths, we are not only seeking optimal risk-adjusted returns, but also fostering a robust economic dialogue between Indonesia and the UK. This alliance further marks our dedication to leverage collective investment expertise for mutual growth and prosperity.”
British Ambassador to Indonesia & Timor-Leste Owen Jenkins: “This new partnership between BII and INA is the latest demonstration of the UK’s commitment to work with Indonesia on green investment opportunities, creating jobs and putting UK expertise at the heart of tackling climate change and supporting social, economic and environmental benefits. As one of BII’s priority markets in Southeast Asia, Indonesia has the potential to become an international climate leader as it continues to accelerate low carbon energy transition. INA’s collaborations with BII reaffirms the commitment of both countries to realise that ambition.”
Nick O’Donohoe, British International Investment CEO: “We are very excited by this partnership with INA as it will not only further our ambitions to provide climate finance in the region but also support Indonesia to accelerate its energy transition goals. With a shared vision to catalyse investment in the private sector to drive sustainable economic growth, we look forward to working with INA to support local businesses that are the forefront of innovations to mitigate climate change as well as increase climate resilience and adaptation.”
$20 Billion Sovereign Wealth Fund Indonesia Investment Authority & $10.4 Billion British International Investment Form Partnership to Focus on Indonesia Investments in Green Infrastructure, Renewable Energy, Climate Resilience & Related Sectors
18th July 2023 – In a significant step toward enhancing bilateral investment ties between Indonesia and the United Kingdom, Indonesia Investment Authority (INA), the sovereign wealth fund of Indonesia, and British International Investment (BII), the UK’s development finance institution (DFI) and impact investor, today announced a strategic partnership aimed at fostering sustainable economic development and cooperation. The partnership, which has been formalized through the execution of an Investment Framework Agreement (“IFA”) between the two entities, will focus specifically within the spheres of green infrastructure, renewable energy, climate resilience and adaptation and related sectors. The IFA was signed in Jakarta by INA Chief Executive Officer, Ridha Wirakusumah, and BII Chief Executive Officer, Nick O’Donohoe.
The partnership underlines the synergy between INA’s dedication and BII’s investment focus to mobilize capital and catalyse select green sectors in Indonesia to achieve development objectives on improved productivity, sustainability and inclusion. Through this IFA, the parties intend to create a more enabling environment for facilitating investments and partnerships in private sector businesses in Indonesia. Leveraging their combined strengths, experience, networks and a shared vision, the partnership is poised not only to seek optimal risk-adjusted returns on invested capital, but also to cultivate sustainable economic growth and address global climate challenges.
INA has designated green energy and transformation as one of its priority investment sectors, focusing on supporting the energy transition toward renewable energy in Indonesia. Earlier this year, INA made its first strategic investment in green energy through PT Pertamina Geothermal Energy (PGE), the largest geothermal energy company in Indonesia. Additionally, INA joined forces with Contemporary Amperex Technology Co., Limited (CATL) to establish a Green Electric Vehicle (EV) Fund that will concentrate on end-to-end EV value chain investment, primarily in Indonesia, reflecting INA’s dedication to support Indonesia’s sustainability and commitment to net zero carbon emissions by 2060. Moreover, INA is marking its commitment in the energy transition mechanism (ETM) working together with Asian Development Bank (ADB) for pilot project, and PT Cirebon Electric Power (CEP), for supporting the energy transition in Indonesia by phasing out coal-fired power plants.
In synergy, BII with its 75 years’ experience of investing to create more productive, sustainable, and inclusive emerging economies, is committed to boosting climate finance in the region. As part of its current 2022-2026 investment strategy, BII re-entered Southeast Asia including Indonesia with plans to invest up to £500 million across the capital structure to support the region’s green energy transition. This commitment was recently demonstrated through BII’s $15 million investment to the SUSI Asia Energy Transition Fund (SAETF), a Southeast Asia-focused energy transition infrastructure fund. In Indonesia, it has invested in the development of run-of-river hydropower and wind projects via a joint venture between SAETF and regional developer Pacific Impact. This reiterates the DFI’s renewed commitment to investing in climate finance in Indonesia, as one of BII’s priority markets in Southeast Asia.
The collaboration signals a new chapter in the economic relationship between Indonesia amd the UK, with potential for substantial mutual benefits. It aims to create pathways for resilient and sustainable economic growth, offering a platform for innovation and synergy in investments between the two nations. As plans are further solidified, details of the joint investments will be announced in due course.
About Indonesia Investment Authority (INA)
The Indonesia Investment Authority is Indonesia’s sovereign wealth fund mandated to increase investment to support the country’s sustainable development and build wealth for its future generations. INA conducts investment activities and collaborates with leading global and domestic investment institutions in sectors that strengthen Indonesia’s advantages and provide risk-adjusted optimal returns.
About British International Investment (BII)
British International Investment is the UK’s development finance institution and impact investor. BII is a trusted investment partner to businesses in Africa, South and Southeast Asia, and the Caribbean. It invests to support the UK Government’s Clean Green Initiative and to create productive, sustainable, and inclusive economies in our markets. Between 2022 and 2026, at least 30 per cent of BII’s total new commitments by value will be in climate finance. BII is also a founding member of the 2X Challenge which raised over $16 billion to empower women’s economic development from 2021-2022. The company has investments in over 1,470 businesses in emerging economies across 65 countries and total assets of £8.1 billion.
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