INA has focused on building its fundamentals to be able to carry out its mandate."
The year 2021 marked the inaugural year of the Indonesia Investment Authority (INA) as a sovereign wealth fund and investment management institution established by the Government of the Republic of Indonesia. INA is expected to be able to capitalize on the potential of domestic investment, and in the long term, support sustainable national development and to build wealth for the country’s future generation.
Within a year of its formation, INA has focused on building its fundamentals to be able to carry out its mandate. The series of steps taken include developing an effective organization, formulating and ratifying 36 board of directors’ regulations that underlie INA's operational activities, as well as attracting the best human resources as experts in their fields, developing international standards of governance and risk management tools, as well as building a productive operational infrastructure.
In addition, one of the foundational things during the initial phase of INA's journey is to build a good reputation and credibility among investors. The partner selection and investment negotiation process, together with partner investors and investees, is consistently carried out by adhering to the principles of good governance in accordance with international best practices.
Additionally, INA has established a USD3.75 billion toll road investment platform with a consortium of international investors involving Caisse de dépôtet placement du Québec (CDPQ), APG AssetManagement (APG), and the Abu Dhabi Investment Authority (ADIA). INA and the consortium have reviewed 35 toll road assets, especially the Trans Sumatra and Trans Java toll roads with the aim to create multiplication effects on economic growth and optimize economic potential in Sumatra and Java.
INA has also signed an Investment Framework Agreement with the Abu Dhabi Growth Fund (ADG) which was established to support the UAE's USD10 billion investments. This partnership will be the basis for ADG and INA to collaborate through an agile approach in various forms of financial investment with optimal returns and prioritizing the principle of sustainability.
In the airport sector, INA and PT Angkasa Pura II (Persero) have signed 2 (two) Head of Agreements (HoA) on the Strategic Partnership for Airport Management and Development as well as the Strategic Partnership for Management and Development of Cargo Village. At the end of 2021, INA has also signed 2 (two) Head of Agreements (HoA) with Waskita Karya and Hutama Karya regarding Strategic Partnerships in the Toll Road sector.
As reported in INA Financial Statement, INA has received capital injection amounting to Rp75 trillion in stages until the end of 2021. INA also managed to record net profit of Rp231.2 billion in 2021 and increased its total assets and equity to Rp79.2 trillion and Rp79.1 trillion respectively. INA's Financial Statement is prepared based on International Financial Reporting Standards (IFRS).
Furthermore, in line with the Government's commitment and global practice, INA pays serious attention to social responsibility in the implementation of operations and investments through the establishment of special divisions, policy formulation, and frameworks based on environmental, social and governance (ESG). The ESG policy has been approved and has already been used to conduct investment due diligence. Furthermore, INA has been registered as an Associate Member of the International Forum Sovereign Wealth Fund (IFSWF) a few months after its formation.