Pacific Money | Economy | Southeast Asia

What the Indonesia Investment Authority Did in 2025

When it was founded in 2021, it was not clear exactly what the purpose of the state investment fund was. Last year, the picture started to become more clear

A view of the central business district in Jakarta, Indonesia.

The first of Indonesia’s two state-owned investment funds, the Indonesia Investment Authority (INA), recently released its 2025 financial statement. I’ve been following the progress of this fund since its inception, and even though the INA now shares the spotlight with its much larger fellow investment fund, Danantara, I think it is still interesting to track and unpack the latest developments.

First, some headline figures. The INA ended 2025 with IDR 111 trillion in assets on its balance sheet. The rupiah is on the move lately which makes currency conversions somewhat imprecise, but that’s a little over $6 billion at today’s exchange rate. It is also about the same figure as 2024 which means over the course of 2025 the INA didn’t really grow its total assets so much as shift how they are allocated. Assets rose as the fund made more loans and invested in a number of subholding companies. This increase was offset by a decrease in the market value of shares the INA owns in Bank Mandiri and Bank Rakyat Indonesia.

Revenue rose 43 percent year over year to IDR 8.5 trillion, due to a combination of interest and dividend income as well as unrealized gains in the value of its subholding companies. These subholding companies are a very important part of the INA’s structure and function, so we will come back to them. The investment fund posted a year-end profit of IDR 7.4 trillion which is a little over $400 million at today’s exchange rate.

If we look at Singapore’s 2025 budget, we see that net investment returns from sovereign wealth funds like Temasek and GIC were around $21.5 billion, and they are a key component of Singapore’s fiscal strategy. Returns from these sovereign wealth funds are instrumental in funding the government every year. Looking at the INA’s 2025 income, it will be quite a while before it is on the same footing.

But that misses the point. The INA is not a conventional sovereign wealth fund. It’s not really a sovereign wealth fund at all, in the sense that sovereign wealth funds reinvest accumulate financial reserves and use earnings to support the state budget. The INA is more of a co-investment fund, designed to catalyze and direct investment into priority sectors, often by entering into strategic partnerships with foreign firms that might otherwise be reluctant to bring their capital and technology to Indonesia. For that reason, profit and loss are less interesting (to me anyway) than the subholding companies.

These are subsidiaries the INA creates and then uses to invest in priority sectors or create partnerships, often with foreign firms but also domestic ones, to co-develop projects. For instance, in 2021 the INA created a subsidiary called PT Maleo Investasi........

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