INDONESIA’S wealth fund will ensure that new and existing investments are priced in line with rising global risks, including soaring inflation that’s pushing interest rates higher, its chief executive officer said.

“We will be quite cautious about the pricing that we pay and the structure we put together in the negotiations we’re having,” Ridha Wirakusumah, CEO at the Indonesia Investment Authority, said in a Bloomberg Television interview with Haslinda Amin. He spoke on the sidelines of the Group of 20 finance ministers and central bank governors meeting in Bali.

The fund known as INA was set up to attract much-needed investments to South-East Asia’s largest economy. China’s Silk Road Fund, the Abu Dhabi Investment Authority and Caisse de dépôt et placement du Québec are among the fund’s investors.

INA has invested mainly in toll roads and Wirakusumah said it will continue to focus on basic and digital infrastructure, healthcare and energy transition. It has about US$20 billion of funds pledged so far, with the amount likely to double this year and again next year, he said.

“The beauty of it is that if we are successful, we will scale up quite quickly and the government will give us more money,” Wirakusumah said. “So I’m not particularly worried about the US$200 billion tagline — I’d like to actually get even much bigger than that,” he said of the fund’s target size of assets to manage.

President Joko Widodo envisioned that the wealth fund launched last year would be overseeing US$200 billion in assets by April 2024, or within two to three years. INA may hit the target later than Jokowi’s expectations, Wirakusumah had said earlier. — Bloomberg