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Indonesia’s social security fund, BPJS Ketenagakerjaan, is looking to invest in overseas companies that support artificial intelligence infrastructure — including data centers, power providers, and cable firms — if it secures government approval for cross-border investments. Edwin Ridwan, the fund’s director of investment development, said the AI supply chain represents a compelling diversification opportunity, with target markets including the U.S., Taiwan, Japan, and South Korea.
Currently managing assets worth 879 trillion rupiah (about $52 billion), BPJS is seeking permission to allocate up to 5% of its portfolio abroad. Ridwan noted that while core AI companies like chipmakers are becoming crowded, investments will depend on valuations — even in high-profile players such as Nvidia.
If approved, BPJS plans to steer most of its overseas allocation — roughly $2.5 billion — into liquid markets such as foreign equities via ETFs or mutual funds, as the fund is not currently targeting private equity. The decision is contingent on regulatory changes related to overseas investment rules for pension funds, which are still being drafted.
Ridwan added that BPJS is pushing for pension fund regulations that would permit investments in gold and establish loss-cutting mechanisms. However, he emphasized that deployment of foreign capital will likely wait until the rupiah stabilizes, since a weaker currency could magnify risks. The rupiah has weakened more than 3% this year, raising investor concerns, especially after the recent dismissal of Indonesia’s finance minister.
Source: CNA
