Indonesia’s sovereign wealth fund, the Indonesia Investment Authority ( INA ), is partnering with global alternative investment manager Ares Management Corporation to drive investment through hybrid capital solutions and securitization.

Under a newly signed investment framework agreement, Ares’ Asia credit funds have committed to strengthening Indonesia’s financial ecosystem by investing up to US$500 million annually.

The collaboration will bring together INA’s local market knowledge and Ares’ global expertise in structured finance. By leveraging these strengths, the partners aim to unlock new investment flows and create sustainable financing solutions that offer optimal risk-adjusted returns.

The initiative also aligns with INA’s broader mission to attract foreign direct investment, while helping to modernize the country’s financial markets and provide businesses with more flexible capital access.

Ares, one of the largest credit-focused alternative investment managers in Asia-Pacific, oversees US$348.8 billion in global credit assets, with the Ares Asia credit platform overseeing US$11.5 billion. With a strong presence in the region, the firm sees Indonesia as a key growth market for its private credit and securitization strategies.

“As Ares looks to scale our presence in Asia-Pacific, we see attractive investment opportunities in Indonesia,” says Eric Vimont, partner and head of strategy of Ares Asia. “Alongside INA, we look forward to leveraging our experience in private credit and securitization, bringing more innovative financing solutions to the Indonesian market that can help support sustainable economic growth.”

For INA, this initiative is part of its ongoing efforts to introduce innovative financing mechanisms that can enhance liquidity in the market. Securitization, in particular, will play a crucial role in unlocking capital tied to existing assets, making large-scale investment projects more viable.

INA chief executive Ridha Wirakusumah points out that working with Ares will not only expand access to capital but also strengthen Indonesia’s position as a leading investment destination in Southeast Asia.

“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, together we aim to establish a stronger track record and knowledge base while leveraging global expertise to unlock scalable investment opportunities,” says Wirakusumah.