Jakarta, 6 December 2022 – Indonesia Investment Authority (INA) signed an Investment Framework Agreement (IFA) with Investment Fund for Developing Countries (IFU) of the Kingdom of Denmark to explore investment opportunities of which will advance the green energy transition and inclusive social development in Indonesia, including prospective coinvestments in renewable energy, water, waste management, and other circular opportunities.
The target total value of the joint investments is expected to reach up to $500 million. IFU and INA has the ambition to provide risk capital to green and sustainable projects in the range of $100 million, respectively. Together, the two investors will use their leverage to seek potential co-investors contributing towards the remaining target.
The Investment Framework Agreement signed today also marks the first investment agreement between INA and Scandinavian entity that is well-known for its high economic, social, and governance (ESG) standards. IFU with its proven track record in the renewable energy value chain is a strong partner for Indonesia when it comes to the country’s green energy transition. Furthermore, the agreement is in line with INA’s commitment to attract and partner with global investors to enable a sustainable development in Indonesia. It also displays the trust and optimism to INA and Indonesia, not only in promoting green investments, but also in implementing world-class operations and governance. INA’s CEO, Ridha Wirakusumah said, “We are pleased to have IFU as our partner to help accelerate sustainable investments in Indonesia, to bring the country a global set of a just energy transition mechanism.”
“The deal marks another positive step to support Indonesia’s commitment in meeting its 2060 carbon neutrality pledge and we remain optimistic that not only will the agreement bring optimal returns for the parties involved, but also supports and stimulate an inclusive growth for Indonesia in the long run.” Torben Huss, CEO of IFU said, “Signing this agreement is another step in our effort to support the green transition. A partnership with INA provides a good platform for assisting private companies to engage in greening the Indonesian economy and enabling private investors to increase investments with a double bottom line – being profitable as well as reducing green house gas emissions. We are looking forward to a fruitful cooperation with INA and Indonesia.”
About Indonesia Investment Authority (INA)
The Indonesia Investment Authority is Indonesia’s sovereign wealth fund, mandated to increase investment to support the country’s sustainable development and build wealth for its future generations. INA conducts investment activities and collaborates with leading global and domestic investment institutions in sectors that strengthen Indonesia’s advantages and provide optimal returns.
For more information, please visit www.ina.go.id.
About Investment Fund for Developing Countries (IFU)
IFU – the Investment Fund for Developing Countries is a Danish impact investor contributing to green, just and inclusive societies as well as supporting the Sustainable Development Goals. We provide risk capital to companies operating in developing countries and emerging markets across Africa, Asia, Latin America and parts of Europe. Investments are made on commercial terms in the form of equity, loans and guarantees. IFU has co-invested in over 1,300 companies in more than 100 developing countries and emerging markets. Contracted investments total EUR 31 billion, of which IFU has contributed EUR 3.4 billion. Capital under management is EUR 1.7 billion.
Read more at www.ifu.dk.
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