Indonesia State Investor to Launch Fund with Development Bank of Japan

The government-backed Development Bank of Japan will launch a USD 60 million fund with Indonesia's sovereign wealth fund to provide financing to midsize companies in a country with bright economic growth prospects. The DBJ and the Indonesia Investment Authority (INA) will set up a jointly run operating company, with each side contributing USD 30 million. This will mark the DBJ's first partnership of this kind with a foreign state-backed fund.

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INA will tap its network of companies to find candidates with annual sales of around JPY 50 billion to JPY 100 billion (USD 30 million to USD 60 million). While there will be no restrictions on what industries the fund will cover, candidates will likely come from areas that INA focuses on, such as healthcare and logistics. With this partnership, DBJ aims to build connections with promising Indonesian businesses that could lead to future joint investments with Japanese business partners. The plan is for the fund to invest in three or so companies, expanding if needed.