Indonesia’s sovereign wealth fund and Allianz Global Investors entered a partnership to co-invest in opportunities that support Indonesia’s economic growth and development, with a focus on infrastructure and energy transition projects, according to a Sept. 23 statement.
The $10.5 billion Indonesia Investment Authority, Jakarta, and AllianzGI signed a memorandum of understanding to develop a framework that facilitates joint investments involving the blending of financial instruments to invest in these opportunities.
Each firm will deploy up to $200 million annually through hybrid capital solutions that will provide customized credit solutions to Indonesian businesses, the statement said.
AllianzGI had €555 billion ($594.5 billion) in assets under management as of June 30, of which €50 billion is allocated to infrastructure assets.
“Indonesia’s growth trajectory, particularly in infrastructure and energy transition, aligns closely with our strategic priorities,” Sumit Bhandari, lead portfolio manager of Asia private credit at AllianzGI, said in the statement.
The partnership seeks to “deliver tailored credit solutions to growing middle-market companies, driving sustainable development and contributing to Indonesia’s long-term economic goals," he added.
INA Chief Executive Officer Ridha Wirakusumah said in the statement: “Our joint initiative to deploy hybrid capital solutions is about crafting a robust framework for financial innovation. ... (We) aim to enhance the investment landscape in Indonesia, ensuring each venture not only supports local economic growth but also adheres to stringent optimal risk-adjusted returns."
