The Indonesia Investment Authority (INA), the country’s sovereign wealth fund, and US-based Ares Management Corporation have signed an investment framework agreement (IFA) to boost investments through innovative financing.
The financing models include hybrid capital solutions (HCS) and securitisation, according to an announcement on Thursday.
As part of the partnership, Ares Asia Credit funds plan to invest up to $500 million annually. The partnership combines INA’s local expertise and Ares’s structured finance capabilities to strengthen Indonesia’s financial ecosystem.
“This collaboration reflects a shared commitment to deploying capital effectively and creating innovative and sustainable solutions for Indonesia’s financial ecosystem,” said INA CEO Ridha Wirakusumah.
“As Ares expands in Asia Pacific, we see significant investment opportunities in Indonesia,” said Eric Vimont, Partner and Head of Strategy at Ares Asia. “Through our partnership with INA, we aim to leverage our expertise in private credit and securitisation to introduce innovative financing solutions that support sustainable economic growth.”
As of December 31, 2024, the Ares Credit Group managed $348.8 billion in assets under management, with the Ares Asia Credit platform overseeing $11.5 billion.
Ares is one of the largest credit-focused alternative investment managers in APAC. The collaboration aligns with INA’s goal of attracting foreign direct investment into the country.
Launched in 2021, the INA has provided funding to major Indonesian companies and helped attract foreign capital to boost the country’s economic growth. The Indonesian investor had more than $10 billion in assets under management as of October 2024.
Last month, INA partnered with the government-backed Development Bank of Japan to launch a $60 million fund aimed at financing mid-sized companies in Indonesia.
INA also teamed up with Granite Asia to invest up to $1.2 billion in Indonesia’s technology sector. This strategic partnership aims to provide tailored financing solutions—including equity and hybrid capital investments—to support businesses at various growth stages.
In November last year, INA signed an MoU with Allianz Global Investors (AllianzGI) to deploy up to $200 million annually into hybrid capital solutions for Indonesian businesses in infrastructure and energy transition.
