Indonesia introduced its first sovereign wealth fund, the Indonesia Investment Authority (INA) in 2021. Unlike other sovereign wealth funds, the INA explicitly seeks foreign coinvestors to capitalize on the fund rather than rely on commodity revenues.
The government hopes the INA will attract investments in infrastructure, the digital economy, logistics, the financial sector, tourism, and supply chains, among others.
Indonesia is looking to foreign investors to help build its sovereign wealth fund, in a bold experiment to address the country’s infrastructure needs.
In 2021, the Indonesian government created the Indonesia Investment Authority (INA) the country’s first and only sovereign wealth fund. The government hopes that the fund will finance muchneeded investments in infrastructure and emerging industries, ultimately spurring growth in Southeast Asia’s largest economy.
However, in contrast to most sovereign wealth funds, Indonesia is explicitly seeking foreign coinvestors to capitalize the fund rather than rely on commodity revenues. But will the INA be able to attract foreign investors and, ultimately, fix the country’s longstanding infrastructure challenges?
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This article was first published by AseanBriefing which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, India, and Russia. Readers may write to [email protected]
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Source: Thailand business News
