Indonesia’s sovereign wealth fund, the Indonesia Investment Authority, has signed a memorandum of understanding with Export Development Canada that sets aside up to C$825 million, or roughly US $600 million, to back projects with a Canada–Indonesia nexus.
The agreement was signed in Ottawa on Sept. 25 and outlines cooperation in infrastructure, clean technology, renewable energy, and agrifood, according to an official statement from EDC.
The financing allocation will be available to support INA’s investments that meet the partnership’s criteria and align with both institutions’ mandates.
The pact gives Canadian exporters and financiers a clearer lane into Southeast Asia’s largest economy while providing INA with another channel of long tenor capital.
EDC is positioning the partnership as a way to pair its lending and risk expertise with INA’s local knowledge and pipeline access.
INA, created in 2020 to catalyze long term investment in priority sectors, has been building co-investment platforms across transport, energy transition, healthcare, and digital infrastructure.
Canadian officials framed the agreement as part of a broader strategy to expand commercial ties with Indonesia.
Canada’s minister of international trade, said in a press release that the collaboration aims to give Canadian businesses a stronger foothold in agriculture, cleantech, and infrastructure while supporting jobs at home.
Todd Winterhalt, EDC’s senior vice president for international markets, called Indonesia a major destination for Canadian exporters and said the cooperation is intended to strengthen trade links in renewable energy, clean technologies, and infrastructure.
Ridha Wirakusumah, INA’s chief executive, said the goal is to channel Canadian capital into sectors critical to Indonesia’s long term competitiveness while building a platform that attracts global co-investors.
A dedicated allocation of up to C$825 million signals intent to move beyond one off transactions to a programmatic approach that can be replicated across multiple projects.
It also sets a benchmark for other export credit agencies and sovereign funds that are looking to build thematic pipelines around energy transition and essential infrastructure.
EDC–INA anchor can help crowd in commercial banks and institutional investors that prefer to see early public backing.
The MoU does not list specific assets, the sector focus points to where deal flow is ripening. Indonesia is stepping up grid and port upgrades, accelerating utility scale solar and hydro, and investing in waste to energy and water treatment.
The agri-food angle could pull in cold chain, logistics, and processing capacity aimed at boosting food security and export competitiveness.
Canadian firms active in engineering, power equipment, grid software, and project services may find procurement routes that were harder to access before the agreement.
EDC’s allocation suggests an appetite for a mix of loans and structured financing rather than pure equity, which can help sponsors optimize capital stacks and mitigate refinancing risk.
The timing coincides with efforts by both governments to tighten bilateral ties. Canada has highlighted Indonesia as a priority market in the Indo-Pacific, and Indonesia has sought partners to finance infrastructure and clean energy as it targets faster growth and lower emissions.
The EDC–INA arrangement creates a clear channel for project sponsors to engage both institutions early, which can shorten timelines from mandate to financial close.
Access to EDC financing and INA co-sponsorship may improve bankability, lower borrowing costs, and unlock project guarantees that help meet lender hurdles. The partnership may open vendor and service opportunities tied to EDC-supported projects.
For INA and Indonesia based partners, it expands the pool of competitive capital and brings in sector expertise aligned with energy transition and critical infrastructure.
