The primary of Indonesia’s two state-owned funding funds, the Indonesia Funding Authority (INA), lately launched its 2025 monetary assertion. I’ve been following the progress of this fund since its inception, and regardless that the INA now shares the highlight with its a lot bigger fellow funding fund, Danantara, I believe it’s nonetheless fascinating to trace and unpack the newest developments.
First, some headline figures. The INA ended 2025 with IDR 111 trillion in belongings on its steadiness sheet. The rupiah is on the transfer these days which makes forex conversions considerably imprecise, however that’s a bit of over $6 billion at immediately’s change price. It is usually about the identical determine as 2024 which implies over the course of 2025 the INA didn’t actually develop its whole belongings a lot as shift how they’re allotted. Property rose because the fund made extra loans and invested in a lot of subholding corporations. This improve was offset by a lower available in the market worth of shares the INA owns in Financial institution Mandiri and Financial institution Rakyat Indonesia.
Income rose 43 p.c yr over yr to IDR 8.5 trillion, attributable to a mix of curiosity and dividend revenue in addition to unrealized positive aspects within the worth of its subholding corporations. These subholding corporations are a vital a part of the INA’s construction and performance, so we’ll come again to them. The funding fund posted a year-end revenue of IDR 7.4 trillion which is a bit of over $400 million at immediately’s change price.
If we take a look at Singapore’s 2025 funds, we see that web funding returns from sovereign wealth funds like Temasek and GIC have been round $21.5 billion, and they’re a key part of Singapore’s fiscal technique. Returns from these sovereign wealth funds are instrumental in funding the federal government yearly. Wanting on the INA’s 2025 revenue, it will likely be fairly some time earlier than it’s on the identical footing.
However that misses the purpose. The INA just isn’t a traditional sovereign wealth fund. It’s not likely a sovereign wealth fund in any respect, within the sense that sovereign wealth funds reinvest accumulate monetary reserves and use earnings to help the state funds. The INA is extra of a co-investment fund, designed to catalyze and direct funding into precedence sectors, typically by getting into into strategic partnerships with international companies that may in any other case be reluctant to deliver their capital and know-how to Indonesia. For that cause, revenue and loss are much less fascinating (to me anyway) than the subholding corporations.
These are subsidiaries the INA creates after which makes use of to put money into precedence sectors or create partnerships, typically with international companies but additionally home ones, to co-develop initiatives. As an illustration, in 2021 the INA created a subsidiary referred to as PT Maleo Investasi Indonesia which then invested in telecommunications tower operator Mitratel throughout its IPO. In 2021, it created PT Rafflesia Investasi Indonesia which has been used to channel funding, together with from massive international institutional buyers, into the toll highway sector.
PT INA DP World Funding was launched in 2023 to collectively function the Belawan New Container Terminal in Sumatra together with the UAE’s DP World. PT Gaharu Investasi Indonesia was created in 2024 and has been investing within the personal credit score market. Its belongings rose in 2025 indicating elevated exercise on this sector. These subholding corporations, and the initiatives they put money into or co-develop, are actually how we needs to be measuring the worth of the INA.
Because the INA grows and turns into concerned in additional initiatives, the variety of subholding corporations has elevated. In 2025, 10 new straight owned subholding entities have been created. One of many key ones is PT Akasya Investasi Indonesia, which is getting used to again PT LBM Energi Baru Indonesia, a venture underway on the Kendal Particular Financial Zone in Central Java.
PT LBM Energi Baru Indonesia produces cathode supplies for lithium-ion batteries, and is being developed in conjunction with international companions together with huge Chinese language companies. That is a part of Indonesia’s bigger downstream industrialization program, and is an efficient instance of the kind of capital and technology-intensive initiatives, ones that contain strategic partnerships with international buyers, that the INA was designed to help.
One other huge venture introduced in 2025 includes the INA and Indonesia’s different state funding fund Danantara. Along with PT Chandra Asri Pacific, a serious petrochemical producer that’s a part of a home conglomerate, they are going to be investing in a plant that produces precursor supplies for downstream industries comparable to nickel processing. With an estimated worth of $800 million this once more highlights how these funds are being deployed to help nationally strategic initiatives.
When the INA was launched in 2021, it was not clear what precisely it was or how it might operate. During the last 5 years the image has snapped into sharper focus with the INA growing a spread of initiatives in strategic sectors comparable to digital infrastructure, toll roads, ports, healthcare, clear vitality, downstream industrialization and capital markets. It has typically partnered with international buyers which have the capital, in addition to the know-how and know-how, to contribute to long-term progress.
How Indonesia balances the competing roles of two state-owned funding funds, when just some years in the past it had none, stays an open query. However given the way in which international buyers and markets are presently viewing Indonesia, a fund just like the INA that has spent the final a number of years fastidiously constructing its credibility might be a superb factor to have.
