Little is known about the first project that the Indonesia Investment Authority (INA) will invest in, but it is making a big move to kickstart its investment programs. Indonesia’s newly established sovereign wealth fund (SWF) is teaming up with Caisse de dépôt et placement du Québec (CDPQ), APG Asset Management (APG) and a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) to establish the country’s first infrastructure investment platform, aiming to manage US$3.75 billion. In addition, Indonesia’s Workers Social Security Agency (BPJS Ketenagakerjaan) recently announced its investment plan in the INA at nearly Rp 25 trillion (US$1.8 billion).

The INA had secured Rp 50 trillion – 60 trillion worth of investment commitments for its wealth fund up to April 2021.¹ In its first round of investment, the fund will be channeled to finance infrastructure projects that include toll roads, airports and seaports. On May 21, the INA-CDPQ-APG-ADIA consortium announced its partnership for joint investment opportunities in Indonesia’s toll road sector. The news release reports that the consortium will evaluate a set of initial toll road investment opportunities over the next six months, and continuously look for investment opportunities in the toll road sector over time.² 

On May 24, BPJS Ketenegakerjaan announced that it was also participating in INA investment. The agency, also called BP Jamsostek, currently manages Rp 490 trillion.³ It plans to invest in the INA up to the maximum amount allowed by Government Regulation (PP) no. 55/2015 Article 29, which is 5 percent of the total funds it manages. According to the regulation, BPJS Ketenagakerjaan is only allowed to allocate a maximum of 5 percent of its funds for direct investment. Furthermore, it can only distribute a maximum amount of 1 percent of its funds for one party.

Therefore, BPJS Ketenagakerjaan is likely to invest nearly Rp 25 trillion in the INA and can only invest a maximum of Rp 4.9 trillion in one project or company. The investment cooperation will be in the form of direct investment and co-investment schemes and will last up to two years.⁴ In addition, the direct investment will be placed gradually. Currently, the direct investment that has been made is 0.01 percent of its total funds.⁵ 

INA spokesperson Masyita Crystallin said the INA would soon make its first investment by channeling its fund into three toll road projects and one more toll road project in the third quarter this year.⁶ However, there has been no clear indications of which toll road projects specifically will receive the first INA investment. Following the infrastructure sector, the funding will be directed to finance the healthcare, digital economy and renewable energy sectors.