The Indonesia Investment Authority (INA) and a subsidiary of Ares Management Corporation have entered into an investment framework agreement (IFA) to foster investments through innovative financing mechanisms such as hybrid capital solutions (HCS) and securitization.
The duo said in a statement on Thursday that this collaboration aims to unlock sustainable investment flows while supporting projects that leverage both INA’s and Ares’
experience to create sustainable and impactful outcomes for Indonesia’s economy.
Ares Asia Credit funds have committed to exploring investment opportunities up to $500 million annually, demonstrating the scale and ambition of this collaboration.
The IFA outlines a collaborative, mutually agreed framework for INA and Ares to explore tailored investment opportunities that allow for more optimal capital structures to advance Indonesia’s financial ecosystem through sustainable growth and economic resilience.
INA and Ares aim to deploy capital to achieve optimal risk-adjusted returns that leverage the investment expertise and networks of both organizations.
Ares’ experience in structured finance combined with INA’s in-depth local insights is poised to deliver meaningful economic impact.
Ares stands as one of the largest credit-focused alternative investment managers in Asia Pacific (APAC).
As of December 31, 2024, the Ares Credit Group managed $348.8 billion in assets under management, with the Ares Asia Credit platform overseeing $11.5 billion.
This strong regional presence positions Ares as a strategic investor in supporting the advancement of Indonesia’s financial ecosystem through innovative capital deployment strategies.
“This collaboration with Ares represents a significant step in INA’s efforts to strengthen the implementation of innovative financing practices such as Hybrid Capital Solutions and securitization,” said Ridha Wirakusumah, Chief Executive Officer of INA.
“Together we aim to establish a stronger track record and knowledge base while leveraging global expertise to unlock scalable investment opportunities,
“This collaboration reflects a shared commitment to deploying capital effectively and creating innovative and sustainable solutions for Indonesia’s financial ecosystem,” he added.
Edwin Wong, Partner and Head of Ares Asia, said with the largest economy in Southeast Asia, Indonesia is a key market for Ares’ Southeast Asia franchise.
“We have been actively investing in the country for more than two decades,
“We believe partnering with reputable institutions like INA should accelerate the growth and impact we aim to achieve,” he added.
Eric Vimont, Partner and Head of Strategy of Ares Asia, said as Ares looks to scale our presence in Asia Pacific, the firm sees attractive investment opportunities in Indonesia.
“Alongside INA, we look forward to leverage our experience in private credit and securitization, bringing more innovative financing solutions to the Indonesian market that can help support sustainable economic growth,” he added.
Aligned with INA’s broader mission to attract foreign direct investment and catalyze economic growth, this partnership leverages Ares’ ability to fundraise third-party capital both across Asia and globally, creating a direct impact on capital flowing into Indonesian investments and amplifying INA’s role as a co-investor, said the statement.
Ares brings an invaluable network that should support the inflow of foreign direct investment into Indonesia while strengthening INA’s ability to engage in innovative investment strategies.
Additionally, the collaboration provides an opportunity for INA to deepen its knowledge in securitization by drawing on Ares’ experience globally in alternative credit.