BPJS Ketenagakerjaan Explores AI Infrastructure Investment Opportunities Abroad

Strategic Expansion Plans

BPJS Ketenagakerjaan, one of Indonesia's largest institutional investors, is considering investing in artificial intelligence (AI) infrastructure companies abroad. The pension fund currently manages a substantial Rp879 trillion (US$52 billion) portfolio and is seeking government approval to expand its international investments up to 5% of its total assets.

Target Investment Areas

The fund is particularly interested in companies supporting AI infrastructure, including:

1. Data centers providing essential infrastructure for AI operations
2. Energy companies supplying power to support AI data centers
3. Telecommunication infrastructure companies, particularly those involved in high-capacity data transmission

Edwin Ridwan, Director of Investment Development at BPJS Ketenagakerjaan, emphasized that while they are interested in the AI ecosystem, their primary focus is on supporting infrastructure rather than core AI companies like chip manufacturers.

Geographical Investment Considerations

The investment plans are not limited to specific countries but are focused on regions with advanced AI infrastructure. Potential investment destinations include:

1. United States
2. Japan
3. Taiwan
4. South Korea

Implementation Challenges

While the investment plan is strategic, its execution depends on several factors:

1. Regulatory approval from relevant authorities
2. Rupiah stability as the fund is cautious about the potential impact on the local currency
3. Investment valuation of target companies

The Indonesian government is currently preparing regulations regarding asset liability management for pension funds, which will provide the legal basis for BPJS Ketenagakerjaan's international investments. If approved, the majority of the international allocation (approximately US$2.5 billion) is expected to be invested through third-party vehicles such as Exchange-Traded Funds (ETFs) or mutual funds, rather than direct investments.