Read the latest news from INA and all of the official press releases.

PT Hutama Karya (HK) has built approximately 1,030 km of toll roads in Indonesia over the past decade, supported by State Capital Injections (PMN) amounting to IDR 131.14 trillion since 2015. Despite receiving substantial PMN, HK's financial burden increased, with debt soaring by 958.46% since 2014, reaching IDR 53.11 trillion in 2023. Throughout 2023, PT Hutama Karya (HK) managed to reduce its debt to IDR 53.11 trillion, down 24.70% from the previous year, thanks to investment collaboration with the Indonesia Investment Authority (INA) and State Capital Injection (PMN) support for National Strategic Projects. In the first half of 2024, HK recorded a net profit of IDR 396 billion, a significant increase from IDR 34 billion in the same period last year, with total assets rising 2,732% since 2014. The company continues to grow positively due to the construction of the Trans Sumatra Toll Road and being selective in choosing quality projects.

Although allocations to emerging markets can carry added risk, asset owners such as GIC and Indonesia Investment Authority (INA) are adding to their already substantial investments in infrastructure funding. Global sovereign wealth funds have been a significant force in the funding of major infrastructure projects across the Asia region. GIC forecasts that global infrastructure investment needs are expected to total around USD 70 trillion between now and 2040. Its latest investment in the sector is backing the expansion of Indonesia’s toll road network. The USD 1 billion investment, made in association with Metro Pacific Tollways Corporation, is for a 35% stake in Jasamarga Transjawa Tol (JTT), a subsidiary of the Indonesian state-owned toll road operator, PT Jasa Marga. JTT is a network of 13 toll roads in the provinces of West, Central, and East Java.

More and more investors are making environmental and social impact a primary criterion for receiving funds, prompting investment management institutions like Indonesia Investment Authority (INA) and Yayasan Kehati to focus on Environmental, Social, and Governance (ESG) aspects. Yayasan Kehati, through the establishment of the SRI-Kehati index in collaboration with the Indonesia Stock Exchange (IDX) since 2009, aims to increase awareness and implementation of ESG among issuers to attract sustainable investment flows. "So what we are looking at is not only the sector or size, but also the impact," said the Chief Risk Officer of the Indonesia Investment Authority (INA). As a sovereign wealth fund, INA collaborates with major investors to inject capital into various sectors, including green energy and transformation, toll road and port infrastructure, as well as digital and healthcare infrastructure. Two key considerations in investments are measurable impact and return on investment.

Indonesia Investment Authority (INA), the country's sovereign wealth fund, is looking to tap overseas investors as it seeks to deepen its focus on green investments, a top INA officer told reporters on Thursday. INA chief risk officer Thomas Sugiarto Oentoro said the wealth fund was reviewing several opportunities in green investments. INA has previously invested in Indonesian geothermal firm PT Pertamina Geothermal Tbk. INA along with Abu Dhabi renewable energy firm Masdar acquired a 20% stake in Pertamina Geothermal in February last year for USD 480 million. Besides geothermal energy, INA is also reviewing solar power and nature-based solutions such as mangrove restoration. INA will directly invest in sustainable or green projects alongside external foreign investors from regions like the US, Europe, and the Middle East.

Impact investing has become a focal point for many investors nowaday. Independent Commissioner of PT Danareksa (Persero) and Commissioner of PT Trimegah Asset Management, Ariani Vidya Sofjan, noted that impact investing (ESG) has long been practiced in Europe and developed countries. A prime example is the Indonesia Sovereign Fund or INA (Indonesia Investment Authority), which incorporates ESG considerations into its investment decisions. Impact investing is a strategy aimed at generating financial returns alongside measurable social or environmental benefits. Investors allocate their capital to companies, organizations, and projects addressing pressing issues such as climate change, poverty, and inequality.

PT Mandiri Manajemen Investasi (Mandiri Investasi) anticipates that the investment climate in the second half of 2024 will remain favorable and potentially offer optimal returns for investors. At the "Mandiri Investasi Market Outlook 2024" event, Deputy Minister of State-Owned Enterprises (SOEs) Kartika Wirjoatmodjo stated that the Ministry of BUMN has a long-term program to drive economic transformation in Indonesia, including renewable energy and mining downstreaming. The Ministry has prepared a long-term roadmap that provides direction for BUMN to become a key driver of Indonesia's economic transformation over the next ten years, focusing on key sectors such as digital, green economy, infrastructure, and social inclusion. Furthermore, Deputy Minister of SOEs Kartika Wirjoatmodjo also conveyed that the investment model in SOEs is not only through the capital market. But also through private deals. In addition, together with the Indonesia Investment Authority (INA), SOEs are building an investment ecosystem that is private in nature with global strategic investors.