(JW Insights) Apr 14 -- The Indonesia Investment Authority (INA) and Chinese battery giant CATL are stepping up plans to set up a special fund - EV Ecosystem Fund - to develop the emerging industry in the Southeast Asian country, reported Nikkei Asia on April 13, quoting an INA senior executive.

Stefanus Ade Hadiwidjaja, the chief investment officer of INA, told Nikkei Asia that the planned fund will explore investments in electric vehicle-related sectors in Indonesia.

INA and CATL have already started "reviewing a deal pipeline," and the EV fund will be open to partnerships with other players across Indonesia's EV space, Hadiwidjaja said.

He did not provide details of the planned fund, such as size and launch timing. But INA and CATL had earlier said they would establish a "green fund" with CMB International Capital Corp., a subsidiary of China Merchant Bank. INA said then that it believed the fund could reach $2 billion.

According to INA CEO Ridha Wirakusumah, Indonesia is keen to develop its own EV and battery industries at home after banning exports of nickel ore to ensure supply for investors since 2020. Indonesia's own EV market is on track to grow, with 2.1 million electric motorcycles and 400,000 electric cars expected to be sold by 2025.

Hadiwidjaja said the EV fund is part of "thematic funds" that INA is looking to create with partners for investments across priority sectors, such as infrastructure, green energy transition, digital economy and health care, and potentially insurance and tourism.

Since its establishment in early 2021 with an initial capital of 15 trillion rupiah ($1 billion), INA had secured nearly $27 billion in co-investment commitments by the end of December last year.

These come from many global partners - including the Abu Dhabi Investment Authority, China's Silk Road Fund, the U.S. International Development Finance Corp., Canadian pension fund CDPQ and Dutch pension fund APG, said the Nikkei Asia report.

(Chen HX)