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Indonesia Investment Authority (INA) has emerged as a key player in the country’s economic transformation. Its first four years have been marked by dealmaking, infrastructure investments, and growing global visibility. But as INA matures, the next phase of its evolution must be defined by clarity, discipline, and sovereign-level capital strategy. This is the vision for INA 2.0. Instead of functioning as a transactional co-investor, INA should become the national balance sheet manager of the Republic. In doing so, INA can serve a role similar to what Abu Dhabi Investment Authority (ADIA) represents: a sovereign allocator with diversified exposure, global income, and institutional resilience.

INA 2.0 is about graduating from domestic projects to managing national exposure, risk, and return across decades.

Strategic Repositioning

INA’s current model is heavily tilted toward domestic infrastructure and SOE-linked investments. While this was a necessary starting point to mobilize capital quickly and demonstrate impact, it must now evolve into a model that considers portfolio exposure, risk-adjusted returns, and global diversification.

Benchmarking INA against ADIA and other global sovereign wealth funds is a strategic necessity. INA must stop thinking only in terms of projects and start thinking in terms of the Republic’s exposure. And start asking this question

• What are Indonesia’s long-term liabilities?
• What capital exposures can hedge them?
• How do we create sovereign yield that persists across political cycles?

Portfolio Structure Transformation

The future INA should be diversified across at least 15 to 25 asset classes. This includes global public equities, private credit, fixed income, real estate, infrastructure, hybrid capital, sovereign bonds, macro strategies, and FX-hedged assets. Infrastructure will still have a place but it cannot dominate the portfolio as it does now.

INA’s current revenue is mostly derived from SOE dividends and interest income, both of which are limited in scalability and exposed to political risk. A mature sovereign fund must not depend on in-kind state assets for cash flow. It must build recurring, globally sourced income that is robust against local shocks.

• Global public equities offer dividend streams and liquidity.
• Private credit offers higher yields with structured downside protection.
• Hybrid capital solutions provide tactical flexibility.
• FX-denominated investments create buffers against rupiah volatility.

INA must think like a global allocator, not just a domestic co-financier. INA must graduate from deal-based thinking to exposure-based strategy. Infrastructure investments should only occur when they fit into a macro-level asset allocation strategy. If a toll road delivers long-term, inflation-protected cash flows and is backed by global co-investors, it belongs in the portfolio. If not, it is a misallocation of scarce sovereign capital.

Functional Clarity with Danantara

With the establishment of Danantara, the national capital strategy can be split into two distinct but complementary arms. INA should be the portfolio manager of the Republic, while Danantara should become the industrial builder focused on equity, SOEs, and sectoral growth.

INA plays across the spectrum of asset classes to deliver yield, manage exposure, and build sovereign resilience. Danantara focuses its capital in strategic SOEs, industrial value chains, and nation-building ventures that require operational oversight and long-term transformation. One manages capital flows, the other manages real assets. Danantara will play a critical role in job creation and sectoral expansion. INA, meanwhile, will ensure that Indonesia is never overexposed to one sector, one country, or one economic cycle.

This is not duplication. It is sovereign alignment.

Thinking Forward to 2045

INA must ask what Indonesia needs—not just today, but in 2045. This includes FX-denominated income, buffers against commodity shocks, and exposure to the sectors that will define future resilience. Global sovereign funds do not invest for headlines. They invest for insulation and optionality. INA must follow the same logic. A sovereign wealth fund is only sovereign if it generates sovereign income. INA must build a predictable, recurring income engine that stabilizes the nation’s fiscal posture regardless of short-term shocks. This is the true value of a national balance sheet.

ADIA achieves this by blending dividend-yielding global stocks, real estate, private equity, and fixed income. INA can emulate this model. Recurring income not only helps fund national development, it also builds confidence in the institution and creates fiscal space during crises.

The transition from reliance on SOE dividends to globally diversified income will take time, but the direction must be clear. INA should become the Republic’s sovereign income generator, complementing Bank Indonesia and the Ministry of Finance in macroeconomic resilience.

Global Sovereign Identity

INA must now act like a global institution. That means speaking the language of global allocators, reporting with world-class transparency, and aligning its asset classes with global trends. It also means creating relationships with foreign funds not just as partners, but as peers. Entering foreign markets is not about prestige. It is about protection. FX-hedged investments, cross-border allocations, and sovereign macro strategies are essential tools in a fragmented, volatile world. INA must build income across currencies, time zones, and business cycles.

INA 2.0 is not about abandoning its early model. It is about evolving it. INA has shown discipline, credibility, and global reach.

Now it must embrace sovereign maturity.

INA must move from being a co-investor in national projects to being a macro steward of Indonesia’s exposure. Let INA play across the capital spectrum. Let Danantara build the future economy. And let both operate under a sovereign capital council (SCC).

The global stage is calling. It is time for INA to step forward—not just as an investor, but as Indonesia’s sovereign capital architect.