Indonesia Investment Authority (INA) and Allianz Global Investors (AllianzGI) have entered into a strategic partnership centred on co-investment opportunities to support Indonesia’s economic growth and development.
This collaboration, formalised through a memorandum of understanding (MOU), aims to create an investment framework that uses both parties’ expertise and business network to help create joint investments through hybrid capital solutions scheme, that is, innovative financing methods that blend various financial instruments to meet diverse investment needs, with a focus on infrastructure and energy transition projects.
As part of this partnership, INA, Indonesia’s sovereign wealth fund, and AllianzGI, a Frankfurt-headquartered investment firm, will aim to deploy up to $200m annually into hybrid capital solutions opportunities, which serve as customised credit solutions for Indonesian businesses.
Particular emphasis will be placed on investments that align with Indonesia’s critical infrastructure needs and support the country’s ongoing energy transition initiatives, according to a joint statement.
Innovative financing, including private credit, methods will replace conventional senior bank loans or traditional equity. By leveraging this investment framework, both parties aim to co-invest jointly in sectors that are aligned with Indonesia’s strategic development, ensuring that investments are managed responsibly based on appropriate terms and structure to achieve optimal risk-adjusted returns for both parties.
Ridha Wirakusumah, CEO of INA, commented: “Our joint initiative to deploy hybrid capital solutions is about crafting a robust framework for financial innovation that supports the sustainable expansion of local enterprises.”
Sumit Bhandari, lead portfolio manager of Asia Private Credit at AllianzGI, added: “Since establishing our private credit team in 2018, we have steadily expanded our presence across Asia, recognising the immense potential the region holds for investment opportunities.
“Indonesia’s growth trajectory, particularly in infrastructure and energy transition, aligns closely with our strategic priorities.”
