1. Startups

Indonesia Investment Authority Prepares Investment Fund for Impact Sector

Through collaboration with the Investment Fund for Developing Countries, the target of managed funds is $ 500 million

Aiming to explore investment opportunities to encourage the green energy transition and support inclusive social development in the country, the Indonesia Investment Authority (INA) signed an Investment Framework Agreement with the Investment Fund for Developing Countries (IFU) from the Kingdom of Denmark.

The agreement covers prospects for co-investment in renewable energy, water, waste management and other circular economies. The total investment target for both parties is planned to be up to $500 million.

Furthermore, IFU and INA have the ambition to offer capital for “green” and sustainable projects, with a contribution of around $100 million each. With the strength they have, both parties will jointly search co-investors other potential to contribute to meeting the difference in the total investment target mentioned above.

"Today's agreement marks a positive step in supporting Indonesia's commitment to meeting the 2060 carbon neutral target. We are optimistic that this agreement will not only provide optimal benefits with appropriate risks for the parties involved, but can also support and encourage inclusive growth for all. Indonesia in the long term," said Chairman of the INA Board of Directors, Ridha Wirakusumah.

Focus on the social environment and ESG

This also marks the first investment deal between INA and a Scandinavian entity known for its high environmental, social and governance (ESG) standards. IFU with its proven track record in the renewable energy value chain, can be a strong partner for Indonesia in terms of green energy transition.

Furthermore, this agreement is in line with INA's commitment to attract and partner with global investors to promote sustainable development in Indonesia. This shows trust and optimism for INA and Indonesia, not only in promoting green investment, but also in terms of implementing aspects of operationalization and governance with world-class standards.

"The partnership with INA provides an ideal platform to help private companies get involved in creating a greener Indonesian economy and allows private investors to increase their investment with double returns – businesses that remain profitable while reducing greenhouse gas emissions. We look forward to working with INA and Indonesia will bring many benefits,” said IFU CEO Torben Huss.

Until now, IFU has jointly invested in more than 1.300 companies in more than 100 developing countries and emerging markets. The investments that have been signed are worth a total of EUR 31 billion, with the IFU having contributed EUR 3,4 billion. The managed capital is EUR 1,7 billion.

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