Sovereign Wealth Funds and Foreign Pensions Have Mostly Avoided Indonesian Infrastructure
Posted on 02/12/2021
Indonesia is strategically situated between two oceans – the Pacific and Indian Oceans and two continents – Asia and Australia. Despite the geopolitical benefits and vast natural resources of Indonesia, sovereign investors have found opportunities in the periphery, selecting other countries in Asia. Country-wise, Japan and Singapore have been key contributors to Indonesia’s foreign direct investment in recent times.
Direct Investments by Sovereign Wealth Funds and Foreign Public Pensions in Indonesia
Source: SWFI.com. Global Asset Owner Database. Fund commitments excluded.
By analyzing direct investments by sovereign wealth funds and overseas public pensions, most direct investments in Indonesia went toward materials, consumer tech, and banking. These sovereign investors preferred the natural resource plays before 2016, switching to banking in 2017, and then makin