Silk Road Fund and Indonesia Investment Authority Establish Cooperative Framework of Joint Investment

Date：01 January 2023

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The Indonesia Investment Authority (INA) is Indonesia’s sovereign wealth fund. Established in January 2021, INA is mandated to support Indonesia's sustainable development and build wealth for its future generations via increasing investment.

In June 2022, Silk Road Fund and Indonesia Investment Authority signed an Investment Framework Agreement (“IFA”). Under the IFA, the Fund intends to invest up to RMB20 billion or the equivalent amount of foreign currency with prioritization of using RMB, to jointly explore investment opportunities and to establish long-term strategic partnership with INA. The key goal is to support Indonesian projects that aim to enhance livelihood and promote development, in order to boost economic and social cooperation and tighten bilateral ties.

Cooperation between the Silk Road Fund and INA is well underway. In September 2022, the first deal was sealed under the IFA framework to provide debt financing to Traveloka, an online travel service platform in Southeast Asia. The investment helps promote the development of Indonesia's digital economy and improve the livelihoods of its people. In November 2022, the two parties signed an agreement to jointly invest in KAEF, an Indonesian state-owned pharmaceutical company, to help KAEF improve capital structure and expand business, in order to provide better medical services to the Indonesian society.