Insights Hub
At Insights Hub, we curate thought pieces that touch upon subjects of long- term significance for our nation and beyond. It's not about having all the answers, but about asking the right questions and seeking understanding. Here, you'll find perspectives from our diverse team, all crafted with the future of Indonesia firmly in mind.
Insight: Understanding sovereign wealth funds and their application in Indonesia
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.
Blended Finance Driving Capital To Emerging Markets
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
Investment and Partnership for Infrastructure Optimization
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.
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Viewpoint: Expanding data centre capacity can ensure Indonesia’s continued digital vitality
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
Helping Address Humanity’s Greatest Challenges by Investing in Emerging Markets
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
