Already Received IDR75 Trillion Capital Injection, Indonesia Investment Authority Will Realize US$2.6 Billion Investment This Year

Deputy Minister of Finance Suahasi Nazara. (Photo: Doc. Antara)

JAKARTA - Deputy Minister of Finance, Suahasil Nazara, is optimistic that the Indonesia Investment Authority (INA) will become a catalyst for various large investments.

"We continue to monitor this INA. What has been done, both from the Master Agreement, Head of Agreement, and so on, we will see the details requested are carried out accordingly", said Suahasil at the 2022 BNI Investor Daily Summit, quoted by Antara on Wednesday, October 12.

The government has provided INA's initial capital of 5 billion US dollars or IDR 75 trillion.

At the beginning of its formation, the investment management agency received commitments of up to 25 billion US dollars from investment partners.

So far, INA has acquired two toll road assets on the Trans Java Network and invested in the largest Online Travel Agent (OTA) in Indonesia through a private debt deal.

INA will continue to focus on implementing investments with an estimated total pipeline of up to US$2.6 billion by 2022 in various sectors, including several thematic fund strategies.

The Ministry of Finance noted that until August 22, 2022, INA has signed one Master Agreement, two Head of Agreements, seven Letters of Intent (LOIs), two Binding Offers, one Conditional Sales Purchase Agreement (CSPA), and 74 Non-Disclosure Agreement (NDA) with SOEs, potential investors, legal advisors, and banks.

According to Suahasil, the formation of INA has made progress in the passage of the Job Creation Act (UU Ciptaker) which was issued by the government in 2020.

"We don't forget the reforms in the Copyright Act, which improve 79 laws", he said.

In addition to INA, progress is starting to be seen from the implementation of the Copyright Act, namely the Online Single Submission (OSS), implementation of wages and job loss insurance programs, institutional improvements through the establishment of the Ministry of Investment, revision of tax regulations, four new special economic zones, as well as a positive list of investments for improving priority sectors.