Why foreign investors are eyeing Indonesia’s SWF
The country's budding sovereign wealth fund needs foreign investment, but may struggle to offer levels of return. Would-be investors may instead invest to support geopolitical priorities.
Indonesia is betting its new sovereign wealth fund (SWF) can attract offshore commitments to narrow an infrastructure investment gap that the World Bank estimates at $1.5 trillion. But foreign investors may well need geopolitical motives for investing, given the difficulty of enjoying sufficiently high returns for the risk they would have to undertake.
Infrastructure lies at the core of the Indonesia Investment Authority (INA)’s mandate. The SWF is set to assign funds to a new $33…
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