Indonesia Investment Authority (INA), the country’s sovereign wealth fund, has partnered with Singapore-based investment firm Granite Asia to inject up to $1.2 billion into Indonesia’s technology sector, according to a statement on Monday.
The strategic partnership, formalised through an Investment Framework Agreement, will offer tailored financing solutions—equity and hybrid capital investments—to businesses at various stages of development, fostering innovation while optimising risk-adjusted returns for investors.
The partnership aims to address a critical gap in the market: providing flexible financing solutions beyond traditional bank lending, particularly crucial for technology-driven companies and traditional businesses undertaking digital transformation and pursuing sustainable growth.
The initiative targets local and international companies with a strong Indonesian market presence, with technologies that can benefit the local market over the long term.
INA CEO Ridha Wirakusumah highlighted Granite Asia’s 24-year track record in technology investing as crucial to advancing Indonesia’s digital infrastructure. “This partnership will enable us to introduce transformative technologies to Indonesia, facilitating the digital transformation of key sectors and strengthening the broader technology ecosystem,” he said.
Granite Asia senior managing partner Jenny Lee added “We recognize the immense potential of Indonesia’s rapidly evolving economy and technology ecosystem and are excited to partner with INA to help accelerate this transformation. By leveraging both equity and hybrid capital solutions, we can offer tailored financing that meets the diverse needs of businesses at various stages of their technology journey.”
Granite Asia, formerly GGV Capital, manages $5 billion in assets across the Asia-Pacific region. The firm’s impressive portfolio includes investments in 48 companies valued at over $1 billion each and has facilitated 30 successful IPOs.
The firm, which managed $9.2 billion globally, prioritises five long-term investment themes including consumer growth & transformation, enterprise workflow & supply chain, food systems & sustainability, health innovation & wellness, and energy transition & automation.
Chickin, McEasy, Swap Energy, Ruangguru, and eFishery, are among the Indonesian startups in its portfolio.
As the country’s sovereign wealth fund, INA is mandated to increase investment to support the country’s sustainable development by partnering with leading global and domestic institutions. Last month, INA signed an MoU with Allianz Global Investors (AllianzGI) to deploy up to $200 million annually into hybrid capital solutions for Indonesian businesses in infrastructure and energy transition.
