Indonesia Investment Authority (INA) Successfully Recorded Its First Cooperation

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The original domestic Sovereign Wealth Indonesia Fund (SWF), called the Indonesia Investment Authority (INA) finally bagged a cooperation agreement to finance infrastructure development for the first time since it was formed and announced to the public by Jokowi in January 2021.

This was conveyed by President Joko Widodo (Jokowi). He couldn’t hide his excitement after witnessing the first agreement being made 14 months ago.

“Today I am very happy, the egg broke,” said Jokowi while giving directions in the signing of the agreement by the Indonesia Investment Authority (INA) 2022 which was broadcast virtually, Thursday (14/4/2022).

For information, INA and Hutama Karya signed a strategic financing agreement with a value of more than Rp. 39 trillion. This agreement will cover the construction of the Trans Sumatra and Trans Java toll roads.

“This will give the effect of domestic and international trust in the way we manage our finances,” said Jokowi.

Jokowi hopes that the signing of this cooperation will be a new chapter. INA is expected to give confidence to investors who want to place their funds for investment needs in Indonesia.

“Many will invest through INA and INA can cooperate with BUMN and the private sector which we hope will have an economic effect on our country,” said Jokowi.

Furthermore, the President of Indonesia also conveyed several government achievements.

He also emphasized the importance of infrastructure development to increase competitiveness with other countries. He said, for more than 40 years, the government has built 780 km of toll roads. Meanwhile, over the past seven years, the government has built 1,900 km of toll roads.

“We really encourage that all of these toll roads are connected immediately, both Trans Java and Trans Sumatra, and some in Kalimantan and Sulawesi,” said Jokowi in his remarks broadcast through the Presidential Secretariat’s Youtube channel.

Jokowi said that one of the obstacles in infrastructure development so far is financing. According to him, the government has not looked for alternative financing and has always depended on the state budget and state-owned enterprises’ finances.

Meanwhile, the development that was handed over to the private sector was also assessed as not going well. Therefore, the government established the Indonesia Investment Authority (INA).

‚ÄúThis is an alternative financing scheme that we never thought of appearing before. And today I am very happy that the egg cracked. It was already signed, the value was more than 39 trillion,” he said.