Indonesia’s sovereign wealth fund and Denmark’s Investment Fund for Developing Countries (IFU) plan to explore green investment opportunities, targeting as much as US$500 million of co-investment projects in Southeast Asia’s largest economy.
The Indonesia Investment Authority (INA) and IFU have signed an investment framework agreement to look for opportunities in green energy transition and inclusive social development, such as renewable energy, water, waste management.
“IFU and INA have the ambition to provide capital to green and sustainable projects in the range of $100 million, respectively. Together, the two investors will use their leverage to seek potential co-investors contributing towards the remaining target,” the Indonesian wealth fund says in a statement.
According to INA Chief Executive Officer Ridha Wirakusumah, the deal will help support Indonesia’s pledge to become carbon neutral by 2060.
IFU CEO Torben Huss says the pact with INA provides a “good platform for assisting private companies to engage in greening the Indonesian economy”.
“The partnership is also a good platform for enabling private investors to increase investments with a double bottom line – being profitable as well as reducing greenhouse gas emissions,” he adds.
