Financial groups Mandiri Investment Management and Armstrong Asset Management have entered into a co-investment strategy that will emphasize small hydroelectric power development in Indonesia.
The companies said Indonesia has a "clear need" for more environmentally-friendly power production, so while the deal will help finance other forms of renewable energy, it will focus on hydropower.
Mandiri Investment Management -- a subsidiary of Indonesia's Mandiri Inestasi -- currently manages about US$2 billion in various mutual funds and is part of the country's largest banking group, Bank Mandiri.
"We are looking forward to working together with people who share our passion to provide power to the people in a sustainable manner while preserving the environment for our children to inherit," Mandiri Investasi CEO Pak Muhammad Hanif said.
Meanwhile, Armstrong, a Singapore-based private equity fund that invests in small-scale renewable projects in southeastern Asia, closed a clean energy fund dedicated to emerging markets in November 2013. The fund has $164 million in total commitments.
"Together with Mandiri Investment Management, we can mobilize private capital to catalyze the development of the renewable energy sector in Indonesia," Armstrong co-founder Michael McNeill said. "We can help to make a positive contribution towards meeting the energy needs of the Indonesian economy on a long-term sustainable basis."
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