Indonesia Investment Authority (INA) and Its Role in FDI

The Indonesia Investment Authority (INA) attracts foreign direct investment by investing alongside selected global partners in Indonesian projects. It is Indonesia’s sovereign wealth fund, not the agency that registers foreign companies or issues their business licenses. For an investor, the useful first question is whether the opportunity calls for a co-investment partner or a company setup route.

What Is INA?

INA describes itself as Indonesia’s sovereign wealth fund. It was established in December 2020 to manage investments that can generate long-term value while supporting national development. Government Regulation No. 74 of 2020 identifies the institution as Lembaga Pengelola Investasi, or LPI, operating under the name Indonesia Investment Authority.

INA is a state-owned legal entity with a special investment mandate. According to INA’s current description of its role, it works with credible domestic and international investors and applies commercial investment discipline. Its purpose is therefore different from processing an individual company’s registration application.

How Does INA Bring Foreign Capital Into Indonesia?

INA’s investment model brings partners into specific assets or investment vehicles. INA says its approach includes co-investment, where it and another investor commit capital to an opportunity they have assessed. The structure and decision depend on the transaction; an announced partnership does not mean that money has already been disbursed.

Its portfolio gives a concrete example. INA reports that its toll road investment platform with Dutch investor APG Asset Management and the Abu Dhabi Investment Authority acquired the Kanci-Pejagan and Pejagan-Pemalang sections of the Trans-Java Toll Road. INA also lists a consortium with DP World that invested in and now operates Belawan New Container Terminal in Sumatra.

These examples show INA’s role as an investment partner in identified projects. They do not establish that every foreign investor, sector, or proposal qualifies for INA funding.

Which Projects Fit INA’s Investment Focus?

INA names transportation, logistics and infrastructure; digital investment; green energy and the blue economy; healthcare; and advanced materials among its priority sectors. Its published investment philosophy also calls for opportunities that offer suitable risk-adjusted returns and where INA and its partners can add long-term value.

A sector match is a starting point, not an eligibility decision. An investor should still assess the project’s ownership, financing needs, expected returns, governance and development risks. INA’s published portfolio and partnerships are useful evidence of the kinds of transactions it has pursued, but each new proposal requires its own assessment.

What Do INA’s FDI Figures Measure?

INA’s financial statements page reports that, through the end of 2025, INA and its co-investors had cumulatively deployed approximately IDR74.5 trillion. INA identifies IDR33.3 trillion as its own cumulative deployment and IDR41.2 trillion as cumulative FDI it contributed to attracting.

Keep those measures separate. The IDR74.5 trillion figure combines INA and co-investor deployment. The IDR41.2 trillion figure describes foreign capital associated with INA’s activity. Neither figure measures all foreign direct investment entering Indonesia.

INA also reported IDR146.2 trillion in assets under management at the end of 2025. Assets under management and investment deployment answer different questions, so they should not be used interchangeably when judging INA’s contribution to FDI.

How Do INA, BKPM, and Danantara Differ?

The institutions can all appear in an Indonesian investment discussion, but an investor approaches them for different purposes.

INA’s partnerships page lists Danantara as a separate institution and partner. The two have also appeared together in proposed investments. Their collaboration should not be read as proof that their mandates or investment decisions are identical.

For the regulatory route, the Ministry of Investment and Downstream Industry/BKPM stated in February 2026 that Indonesia’s Online Single Submission system had been adjusted to Government Regulation No. 28 of 2025 on risk-based business licensing. InvestinAsia’s guide to BKPM’s role in foreign investment explains that institutional distinction in more detail.

Which Route Should Your Investment Take?

If you are presenting a substantial project to potential co-investors, study INA’s published sectors, portfolio and investment philosophy. Prepare a clear account of the asset, counterparties, capital required, commercial case and unresolved risks. INA decides whether a proposal fits its mandate and investment criteria.

If you intend to establish a foreign-owned operating company, assess the permitted business activities, shareholders, company structure and applicable licenses. INA’s interest in a sector does not register your company or replace its licensing requirements. InvestinAsia’s PT PMA registration guide covers that separate process.

Once you know which company will operate in Indonesia, you can match its activities to the appropriate registration and licensing steps. InvestinAsia’s PT PMA registration service supports that company setup route through its Indonesian delivery team, including IZIN.co.id. Any proposal for INA co-investment would require a separate approach to INA.