Our Analytical Methodology

The analysis presented on Indonesia SWF Tracker is not based on opinion or speculation. It is the result of a structured, proprietary methodology designed to provide a comprehensive and objective assessment of the Indonesia Investment Authority (INA). Our framework, developed by the experts on our team, combines rigorous quantitative analysis with deep qualitative insight, allowing us to evaluate the INA’s performance, governance, and strategic direction with clarity and precision.

The Danantara Scorecard™: A Multi-Factor Evaluation Framework

At the heart of our methodology is the Danantara Scorecard™, a proprietary tool we use to benchmark the INA across five critical dimensions. Each dimension is comprised of several key performance indicators (KPIs) which are scored based on publicly available data, direct disclosures, and comparative analysis against global best practices.

1. Governance & Transparency (Weight: 25%)

Strong governance is the bedrock of a successful sovereign wealth fund. We assess the INA’s governance framework based on principles adapted from the Santiago Principles and the Linaburg-Maduell Transparency Index.

KPIs Include: Publication of audited annual reports, clarity of investment mandate, disclosure of portfolio holdings (level of detail), independence of the supervisory board, and clear ethical guidelines.
Scoring: A higher score is awarded for timely, comprehensive, and easily accessible public disclosures.

2. Investment Strategy & Execution (Weight: 30%)

This dimension evaluates the coherence of the INA’s investment strategy and its effectiveness in executing deals. We analyze not just what the INA invests in, but how it invests.

KPIs Include: Alignment of investments with stated sectoral focus (infrastructure, healthcare, digital, etc.), quality and reputation of co-investment partners (e.g., GIC, ADIA, DP World), diversification of the portfolio, and evidence of disciplined due diligence processes.
Scoring: We score favorably on partnerships with experienced global operators and a clear, consistent deployment of capital that matches the fund’s long-term mandate.

3. Performance & Risk Management (Weight: 20%)

While the INA is a young fund, we track early indicators of performance and the robustness of its risk management framework. This is a forward-looking assessment.

KPIs Include: Analysis of entry valuations (where public), reported returns (when available), portfolio volatility benchmarks, and the structure of its risk management committee as outlined in its founding regulations.
Scoring: This score will mature as the INA develops a longer track record. Initially, it focuses on the quality of the risk framework and the prudence of initial investments.

4. National Development Impact (Weight: 15%)

The INA has a dual mandate: generate financial returns and support Indonesia’s economic development. We measure the latter through tangible metrics.

KPIs Include: Catalytic effect on Foreign Direct Investment (FDI), job creation within portfolio companies, contribution to critical infrastructure projects (e.g., Trans-Java toll road, Kuala Tanjung Port), and technology transfer from foreign partners.
Scoring: Based on data from BKPM (Indonesia Investment Coordinating Board), BPS (Central Statistics Agency), and company-specific reports.

5. ESG Integration (Weight: 10%)

We assess how deeply Environmental, Social, and Governance (ESG) criteria are embedded in the INA’s investment process, from screening to portfolio management.

KPIs Include: Existence of a formal ESG policy, alignment with Indonesia’s Nationally Determined Contributions (NDCs), investment in green energy and sustainable infrastructure, and social impact of investments.
Scoring: Higher scores are given for proactive ESG integration rather than simple exclusionary screening.

Data Collection and Partner Audits

Our data is sourced from a wide array of public and private channels, including government decrees, company filings with the Indonesia Stock Exchange (IDX), and subscriptions to global financial data providers. We maintain a proprietary database of all INA-related transactions, which forms the quantitative backbone of our core analysis. While we do not directly audit the INA, our methodology involves a constant process of verification and triangulation of data to ensure the highest possible degree of accuracy, as outlined in our Editorial Standards.

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