January 21, 2026
The Indonesian government aims for 5.4% economic growth in 2026, supported by strong macroeconomic fundamentals, structural reforms, and banking sector liquidity. This creates a favorable, government-backed environment for long-term investment and access to strategic supply chain opportunities.
The Indonesia Investment Authority (INA), the country’s sovereign wealth fund, plays a central role in the national investment strategy. INA facilitates international partnerships and directs investment into sectors vital to Indonesia’s growth.
This guide outlines the investment regulatory environment and highlights INA’s role as a strategic partner for secure, government-supported market entry.
The Indonesia Investment Authority (INA) is Indonesia's sovereign wealth fund. It was established in December 2020 as an independent, professional institution that reports directly to the President of Indonesia.
INA operates within a transparent and reliable legal framework, defined by Law Number 6 of 2023 and Government Regulation Number 74 of 2020. These laws ensure robust governance and instill confidence in local and international investors seeking credible, secure partnerships.
INA uses a two-tier board system:
This structure applies the "Three Lines of Defense" model. This ensures comprehensive risk management at every level of investment decision-making.
Since September 2022, INA has become a full member of the International Forum of Sovereign Wealth Funds (IFSWF). It follows the Santiago Principles (internationally recognized governance standards for sovereign wealth funds).
In the 2022 GSR Global SWF Score, INA ranked in the top five. It achieved the highest score improvement, rising 28% from 2021 to 2022 in governance, sustainability, and resilience metrics.
According to Kontan.id, INA targets USD 1 billion (IDR 16 trillion) in investments for 2026. Chairman Ridha Wirakusumah confirms a focus on five key sectors, with battery ecosystems and renewable energy as top priorities.
INA's largest current investment is the lithium iron phosphate (LFP) battery plant in Kendal. The project will expand to produce cathodes, anodes, and separators. It could become the largest such facility outside China.
Another strategic project is a blood plasma factory. It was completed in December 2025 in partnership with SK Plasma and PMI. Over 100 personnel trained in Korea to enable technology transfer.
The Indonesia Investment Authority offers a globally competitive salary structure, attracting top talent from sovereign wealth funds, private equity, and international financial institutions. By aligning compensation with Singapore and Hong Kong standards, INA ensures investments are managed by a highly qualified team with expertise in long-term and cross-border investment.
This approach builds investor confidence. INA’s team identifies high-value opportunities and manages complex projects using global best practices, offering secure, long-term growth potential.
INA focuses on sectors that create high multiplier effects across the economy:
INA invests in toll road networks, including the Trans-Java and Trans-Sumatra networks. Total enterprise value reaches approximately USD 1.4 billion, with platform potential up to USD 2.75 billion.
These investments improve national connectivity and supply chain efficiency, enabling firms to optimize distribution networks. Reduced transit times and costs create new growth opportunities for investors and industry partners.
INA strengthens energy transition through renewable energy investments. Current projects include geothermal development with global partners. This aligns with government targets to increase clean energy to 30% of the national energy mix by 2030.
Strategic opportunities are developing in solar, geothermal, hydro, and bioenergy. Indonesia’s abundant natural resources present unique positions and attractive returns for investors participating in the regional green energy transition.
Indonesia's digital economy is projected to reach USD 360 billion by 2030, driving increased demand for cloud infrastructure and data centers.
INA invests in data center platforms such as DayOne in Batam, with commitments exceeding USD 1.2 billion. This infrastructure supports Indonesia’s digital transformation and positions the country as a leading technology investment destination in Southeast Asia.
INA supports the development of the EV battery ecosystem through strategic partnerships. The LFP cathode project is part of Indonesia's downstreaming strategy for minerals.
Downstream investments provide significant growth opportunities, supported by government policy and industrial value-added. These investments enable vertical integration for automotive and electronics supply chain investors, supporting strong returns.
Healthcare expansion addresses the need for better access and quality. INA supports strategic investments in healthcare facilities and digital health technology.
These investments drive the telemedicine market and boost domestic pharmaceutical manufacturing. Indonesia’s expanding universal healthcare coverage translates into persistent, expanding demand—providing significant, long-term opportunities for healthcare investors.
The Ministry of Investment Indonesia manages regulations and facilitates investment through the Online Single Submission (OSS) system. This integrated digital platform simplifies business licensing and accelerates investment across all sectors.
The Ministry of Investment Indonesia and INA work together to build an investment ecosystem that is efficient, secure, and supportive. INA steers long-term, strategic projects, while the ministry provides regulatory certainty, ensuring operational efficiency for global investors.
The DNI outlines the sectors that are open or restricted to foreign investment. Recent regulatory updates have expanded opportunities in strategic areas, with increased foreign ownership limits in manufacturing, renewable energy, and digital infrastructure.
Tax Holiday Benefits:
Tax Allowance Benefits:
Eligibility Criteria:
The integrated digital platform processes:
OSS implementation has reduced permit processing times by 60%. Most licences are now issued within 3-7 business days, streamlining project rollout and reinforcing Indonesia’s commitment to an investor-friendly environment.
Conduct comprehensive sector research, analyzing current regulations and market dynamics to make informed, low-risk investment decisions based on the latest information.
Partner with credible, experienced local firms. Large-scale investors should consult INA for strategic insights and leverage its network to secure co-investment and faster market access.
Prepare essential corporate documents:
Select the correct KBLI (Indonesian Standard Industrial Classification) code for your business activities. Register through the OSS system to obtain:
All registrations take place through a single integrated digital platform.
Ensure continuous compliance with:
Maintain active licenses and permits and stay informed about key regulatory changes. Work with local compliance experts to ensure seamless, uninterrupted market presence.
Establish regular review mechanisms. Assess investment performance quarterly. This helps maximize ROI and allows strategy adjustments when market conditions change.
Continuous monitoring keeps your company responsive to new opportunities and helps identify and mitigate potential risks before they affect operations.
The Indonesia Investment Authority demonstrates the government’s commitment to attracting global capital. With a 2026 target of IDR 16 trillion, a focus on EV battery ecosystems and renewable energy, and transparent governance aligned with international standards, INA is a credible strategic partner.
Procurement directors, supply chain heads, and import managers will find that Indonesia offers a mature investment ecosystem, with support from the Ministry of Investment Indonesia, competitive fiscal incentives, and partnership opportunities with experienced local firms.
Investment success in Indonesia requires thorough planning, a solid understanding of regulations, and collaboration with the right local partners. Significant opportunities exist for companies committed to long-term growth in Southeast Asia’s largest economy.
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INA is Indonesia's sovereign wealth fund, established in December 2020. It manages state assets and attracts global investment in strategic sectors, including infrastructure, green energy, digital technology, healthcare, and advanced materials.
INA targets USD 1 billion (IDR 16 trillion) in 2026. Priority focus areas are electric vehicle battery ecosystems and renewable energy. This continues the average annual investment trend maintained over the past four years.
Foreign investors partner through co-investment schemes in strategic projects. Initial steps include consultation with INA to align interests, joint due diligence, and the formation of investment structures that comply with Indonesian regulations and international governance standards.
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