Heaptalk, Jakarta — The Indonesia Investment Authority (INA) has signed an Investment Framework Agreement (IFA) with a subsidiary of Ares Management Corporation to advance investment initiatives using innovative financial strategies, such as Hybrid Capital Solutions (HCS) and securitization. This collaboration seeks to drive sustainable investment flows while leveraging the combined expertise of INA and Ares to create a lasting economic impact in Indonesia. Ares Asia Credit funds have committed to assessing investment prospects worth up to USD500 million annually, reflecting the ambitious scope of this partnership.
The IFA establishes a structured approach for INA and Ares to explore customized investment opportunities, optimizing capital structures to support Indonesia’s financial ecosystem. Combining INA’s local market expertise with Ares’ proficiency in structured finance, the two entities aim to generate strong risk-adjusted returns and promote economic resilience.
Ares, a leading alternative credit investment manager in the Asia-Pacific region, holds a significant presence in the financial sector. As of December 31, 2024, Ares Credit Group managed USD 348.8 billion in assets, with its Asia Credit platform overseeing USD 11.5 billion. This extensive experience positions Ares as a strategic partner in enhancing Indonesia’s financial landscape through innovative capital deployment.
According to INA CEO Ridha Wirakusumah, this partnership marks a crucial step in INA’s mission to implement progressive financing methods, including Hybrid Capital Solutions and securitization. He emphasized that collaborating with Ares will enhance INA’s track record and broaden its knowledge base by integrating international investment expertise to unlock scalable opportunities.
Edwin Wong, Partner and Head of Ares Asia, highlighted Indonesia’s importance in Ares’ Southeast Asia strategy, noting that the firm has been actively investing in the country for over two decades. He believes partnering with a reputable institution like INA will accelerate economic growth and impact. Similarly, Eric Vimont, Partner and Head of Strategy at Ares Asia, stressed that this collaboration will enable both firms to leverage their private credit and securitization expertise to introduce advanced financial solutions contributing to Indonesia’s sustainable economic development.
This strategic alliance aligns with INA’s broader goal of attracting foreign direct investment and fostering economic growth. By utilizing Ares’ global fundraising capabilities, the partnership aims to increase international capital flow into Indonesia, reinforcing INA’s role as a key co-investor. Furthermore, Ares’ extensive network is expected to enhance foreign investment inflows while equipping INA with valuable insights into alternative credit and securitization, strengthening its ability to implement sophisticated investment strategies.
