IDB, Pertamina Pension Fund to set up private equity JV

In addition, the agreement signed by the firms leaves open the possibility of investment in other IDB member countries, according to a statement.

The Pertamina Pension Fund is a division of Pertamina, Indonesia's state-owned oil and gas company. Pertamina CEO Helmi Kamal Lubis told the Jakarta Post that IDB's partnership with the fund is a new step for the bank, which typically avoids investment in Indonesia due to the limited availability of financial instruments there.

Helmi said that IDB and two other investors will commit between $100 million and $200 million to the new firm by the end of the year. The partners plan to launch the firm in May. It will mostly invest in listed companies in the energy, property and infrastructure sectors.

IDB, based in Jeddah, makes equity investments and loans for productive projects and enterprises in its member countries, as well as providing financial assistance to Muslim communities in non-member countries. In accordance with its guidelines, the new fund will be required to comply with sharia law.

IDB has invested in similar funds before, notably the Malaysia-based Islamic Asia Infrastructure Fund. The $262 million vehicle was launched in 2009 by CapAsia to provide start-up and early stage sharia-compliant funding to companies across Southeast Asia.

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• Topics
• Southeast Asia
• Infrastructure
• Infrastructure
• Fundraising
• PIPEs
• Indonesia
• Infrastructure
• PIPE
• Fundraising