The Indonesia Investment Authority (INA), established by the Government of Indonesia, has announced its initial strategy to boost investment in upcoming infrastructure projects in the country.
INA, Indonesia’s sovereign wealth fund, will focus on ensuring good governance by working alongside the supervisory board and accounting firms in the country for a better investment climate. INA will continue the tasks that are currently in-progress and consult with the ministers to find out which assets can be shared with investors. INA will first concentrate on attracting investors to fund the toll road projects.
The priority projects that will be supported by the INA include the construction of toll roads, airports and seaports that will provide more access to less-developed regions (especially in the eastern part of the country). This is expected to help in spreading development more evenly instead of having it concentrated on the main island in the western part of the Indonesian archipelago.
The establishment of INA is part of the Omnibus Job Creation Law that is expected to solve investment bottlenecks in Indonesia and encourage investment by foreign investors. The Government of Indonesia will provide IDR75 trillion to INA until the end of 2021. INA will receive a capital injection of up to IDR30 trillion in cash, deducted from the 2020 and 2021 state budget, and the remaining IDR45 trillion will be in the form of shares.