Indonesia Investment Authority and a subsidiary of Ares Management will collaborate on investments in Indonesia, with Ares Asia credit funds setting aside up to $500 million per year for opportunities.
The $10.5 billion Jakarta-based INA and Ares entered into an investment framework agreement for investments through hybrid capital solutions, securitization and other financing instruments to the benefit of Indonesia’s economy, a joint news release said.
Ares Asia credit funds have committed up to $500 million per year for exploring investment opportunities, which the news release said demonstrates “the scale and ambition of this collaboration.”
Ares’ credit group had $348.8 billion in assets under management as of Dec. 31, while the Ares Asia credit platform housed $11.5 billion.
“This collaboration with Ares represents a significant step in INA’s efforts to strengthen the implementation of innovative financing practices such as hybrid capital solutions and securitization,” INA CEO Ridha Wirakusumah said in the release. “Together we aim to establish a stronger track record and knowledge base while leveraging global expertise to unlock scalable investment opportunities. This collaboration reflects a shared commitment to deploying capital effectively and creating innovative and sustainable solutions for Indonesia’s financial ecosystem.”
Indonesia is a key market for Ares’ Southeast Asia business, said Edwin Wong, partner and head of Ares Asia, in the same release. “We have been actively investing in the country for more than two decades. We believe partnering with reputable institutions like INA should accelerate the growth and impact we aim to achieve.”
Ares had a total $525 billion of AUM as of Dec. 31.
INA said in September it would co-invest with Allianz Global Investors in infrastructure and energy transition projects that support Indonesia’s economic growth.
