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Indonesia’s geographic condition, comprising a vast archipelago, presents both challenges and opportunities for achieving digital inclusion. Despite having a population of over 270 million people, the national fixed broadband penetration rate was only 20 percent in 2022. This figure remains well below the ASEAN average, which reached 39 percent. In line with this development, the Indonesia Investment Authority (INA), as the manager of Indonesia's sovereign wealth fund, has emphasized digitalization and digital infrastructure as key focus areas.

Efforts being made include investments in national and international fiber optic networks, data centers, telecommunications towers, and digital platforms. These initiatives aim to accelerate the development of digital infrastructure to meet the growing demand for digital services. This targeted investment is intended to enhance connectivity and digital services across Indonesia, supporting economic growth and technological advancement.

As Indonesia aims for healthcare self-sufficiency, plasma fractionation–separating plasma into key proteins like albumin and immunoglobulin–is vital. Albumin regulates blood volume and treats liver disease, while immunoglobulins help combat immune deficiencies. Yes, Indonesia lags behind its regional peers in consumption.  

This gap will be addressed by Indonesia’s first plasma fractionation facility, built by INA and SK Plasma. Set to be Southeast Asia’s largest, it is constructed in Karawang with a 600,000L annual capacity. By 2026, it will transform 200,000L of Indonesian plasma into affordable life-saving medicines.

Indonesia established its first sovereign wealth fund (SWF), the Indonesia Investment Authority (INA), in late 2020 to drive sustainable development and secure Indonesia’s future. SWF, including INA, manages investments on behalf of citizens to generate financial or economic returns, with INA having a unique multi-mandate role. INA serves as a savings fund, a development fund supporting national strategic projects, and a co-investment fund to attract foreign direct investment (FDI). Since its inception, INA has become a Full Member of the International Forum of Sovereign Wealth Funds (IFSWF).

‍INA has played a crucial role in advancing Indonesia's economic growth, investing over USD 3 billion in key sectors like transport, green energy, digital infrastructure, and healthcare. Notably, half of this capital comes from reputable foreign investors. INA’s mission includes fostering partnerships with global and domestic investors, navigating local complexities, and ensuring governance and transparency.

Developing nations, including Indonesia, contribute half of global gross domestic product, yet only attract a fraction of the US$220 trillion of global capital. Blended finance then offers a template for how emerging economies can attract investment without compromising on growth or sustainability.

Blended finance is like a symphony, where diverse instruments – public funds, philanthropic contributions and private investment – create harmony and impact. This in turn attracts additional players, drawn to transformative projects that may not otherwise meet their risk-return appetite.

Our CFO, Eddy Porwanto shared how blended finance can be an innovative approach to funding development projects. Read more about it here: https://www.businesstimes.com.sg/opinion-features/blended-finance-driving-capital-emerging-markets

Our Deputy CEO, Arief Budiman, discusses how investment and partnership can comprehensively optimize infrastructure and the way it is developed. He lays out how investment in infrastructure development has an important role to play in maintaining and increasing economic growth, creating jobs, and supporting equal distribution of social welfare.

Infrastructure development stands as the cornerstone of progress in Indonesia and both the Government and SOEs have vital roles to play in infrastructure development.

However, participation from the non-government sector is crucial to complement these efforts, both to increase the productivity of existing assets, and to grow user-demand for new infrastructure that meets the ever-growing needs of society and consumers.

The significance of data centres in powering Indonesia's digital evolution is immense. With a forecasted surge in GDP, an internet penetration rate of over 70%, and an expected growth in the digital economy to $360 billion by 2030, the need for expanding data centre capabilities is not just imperative but lucrative.

Dive deeper into this insightful piece by INA's CIO, Stefanus Ade Hadiwidjaja, on DealStreetAsia. Discover how this positions Indonesia prominently in the Southeast Asian digital landscape: https://www.dealstreetasia.com/stories/indonesia-data-centre-capacity-367403

Can investments in emerging markets both address global challenges and offer compelling returns? Our CEO Ridha D. M. Wirakusumah, explores this intersection, spotlighting Indonesia's unique position. From its demographic dynamics to rich natural resources, he paints a picture of Indonesia's promise.

Discover how strategic partnerships and patient, resilient efforts can pave the way for a brighter, sustainable future. Dive into the full article for an in-depth understanding: https://milkeninstitute.org/article/emerging-markets-indonesia-greatest-challenges

Our Chief Risk Officer, Marita Alisjahbana, sheds light on an important topic: while ASEAN has been a global magnet for foreign direct investment, each member country, including Indonesia, requires a unique investment strategy.

At INA, our investments are guided by a dual mandate: to achieve long-term commercial returns and to foster sustainable economic development in Indonesia’s strategic sectors. We are committed to delivering value through exceptional governance and business practices.

No single strategy for ASEAN investors - Academia - The Jakarta Post

Few variables have as significant an impact on our economic future as population trends. For decades, countries have relied on growing populations to drive prosperity and progress, but we have since entered a new demographic paradigm.

Despite the challenges provided by demographic trends, such as an aging population, these transformations can be viewed as accelerators for innovation and advancement rather than impassable barriers.

Our CEO, Ridha D. M. Wirakusumah, shares his insights on the importance of long-term and sustainable investment to meet the needs of Indonesia's rapidly growing youth population. To learn more about his thoughts and Indonesia's demographic dividend, take a moment to read this insightful piece published by OMFIF here: https://www.omfif.org/44140-2/

Indonesia's geothermal energy is a renewable, low-carbon emitting treasure waiting to be unlocked. And yet, it's not an easy task. The surveying and drilling processes can be complex, costly, and risky. That's where the power of international partnerships comes in.

Our CEO, Ridha D. M. Wirakusumah, along with Masdar (Abu Dhabi Future Energy Company)'s CEO, Mohamed Jameel Al Ramahi, explore how these collaborations can scale up geothermal energy development in Indonesia. By supporting the recent IPO of PT Pertamina Geothermal Energy, we're taking steps toward harnessing this potential, aiming to contribute to our net-zero emissions target by 2060 and bringing economic benefits.

Discover more about how we're working together to tap into Indonesia's abundant geothermal energy resources in the full article: International partnerships key unlocking Indonesia’s geothermal potential - Academia - The Jakarta Post