VIDEO: INA’s Budiman expects 2024 to be an ‘exciting year’

Indonesia’s first and only sovereign wealth fund expects to expand its real estate allocation to 15% over the next five years.

Indonesian sovereign wealth fund Indonesia Investment Authority will be actively investing in real estate in 2024 as it sets out to grow its allocation in the asset class.

In an interview at the PERE Network Asia Summit, Arief Budiman, INA’s deputy chief executive officer, said the investor currently has an allocation of less than 5 percent to real estate but expects to expand that to 15 percent over the next three to five years.

“Given our relatively low base, we are still early in the game,” he said. “Having said that, we think 2024 is actually an exciting year for us.”

Despite the challenges in the macroeconomic environment, Budiman said there were a number of signals that made INA quite optimistic about investing in real estate going forward.

As Indonesia’s first and only sovereign wealth fund, INA was established in 2021 with $5 billion from the country’s government. The investor made its first private real estate investment via a logistics development partnership with ESR Group and MC Urban Development Indonesia in 2023.

For more on Budiman’s reasons for optimism and in which sectors and strategies INA plans to invest this year, watch the video above.

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