Indonesia's sovereign wealth fund, Indonesia Investment Authority ( INA ), is partnering with Allianz Global Investors ( AllianzGI ) to explore co-investment opportunities aimed at boosting Indonesia's economic development.

The partnership, formalized through a memorandum of understanding ( MoU ), seeks to leverage both parties' expertise in delivering innovative financing solutions focused on infrastructure and energy transition projects.

Through hybrid capital solutions, INA and AllianzGI plan to invest up to US$200 million annually in customized credit opportunities for Indonesian businesses.

The solutions will address the growing demand for non-traditional financing options, beyond the limits of senior bank loans and equity, with a focus on projects critical to Indonesia’s development goals.

“Indonesia’s growth trajectory, particularly in infrastructure and energy transition, aligns closely with our strategic priorities. We are excited to support this partnership, focused on seeking to deliver tailored credit solutions to growing middle-market companies, driving sustainable development and contributing to Indonesia’s long-term economic goals,” Sumit Bhandari, lead portfolio manager of Asia private credit at AllianzGI.

INA chief executive officer Ridha Wirakusumah says the partnership with AllianzGI is a strategic move to support local enterprises with innovative financial frameworks, ensuring strong risk-adjusted returns. He also notes that the initiative aligns with INA’s mandates to drive Indonesia’s economic growth and energy transition.