Indonesia Investment Authority (INA), Indonesia’s sovereign wealth fund, is planning to invest up to USD1bn this year, with a special focus on developing green energy, as reported by Financial Times on April 21. Eddy Porwanto, chief financial official of the INA, said the INA is set to spend between USD500m and USD1bn this year across all sectors. Porwanto disclosed that the INA is negotiating about potential investments in the EV ecosystem and geothermal energy. Moreover, the INA is also considering financial support for the early retirement of coal-fired power plants, a move that would contribute to Indonesia’s green transition. With USD9.5bn of assets under management, the INA has invested USD2.1bn since its foundation in 2021.

Indonesia has the world’s largest nickel reserves, a key element widely used in producing green technologies such as solar panels, wind turbines, carbon capture systems, and batteries. Capitalizing on its abundant nickel resources, the country has attracted billions of dollars in investments from smelters, battery makers, and auto manufacturers. Beyond serving as a nickel supplier, Indonesia aspires to become a hub for EV production and energy transition. INA’s investment strategy aligns with this vision by facilitating investment in EV infrastructure and tapping further into the country’s vast geothermal energy potential. While Indonesia has roughly 40% of the world’s geothermal resources, it has only installed 2.3 gigawatts (GW) of geothermal energy, representing less than 10% of its total known potential.

Sources:

https://www.ft.com/content/451cfcfc-cbee-42c8-a1bf-8b174805c55d

https://www.asianinvestor.net/article/indonesian-swf-deputy-chief-outlines-green-investment-plans/483573