Report: Indonesia bankers to raise $300m fund

Two former JPMorgan bankers have set up Ancora Capital Management, an Indonesia-focused private equity firm, to invest in the country’s natural resources and infrastructure sectors.

Gita Wirjawan, formerly the head of JPMorgan’s Indonesian business, and Ivor Orchard, former energy banker at JPMorgan, are reportedly raising a $300 million (€213 million) private equity fund for Indonesia.

Wirjawan and Orchard set up Ancora Capital Management and are drawing commitments mainly from investors in Malaysia, Brunei and the Middle East for their new fund, Wirjawan said in an interview, according to a Reuters report.

The fund will invest in Indonesia's natural resources and infrastructure sectors. It will make investments that are guided by sharia principles, but will not be strictly sharia-compliant.

The firm has already acquired a majority stake in Apexindo Pratama Duta, an oil drilling firm, in partnership with Mitra Rajasa, a transport company.

At JPMorgan, Wirjawan was involved in providing debt and equity financing to companies. Prior to working at JPMorgan, he was at Singapore Technologies Telemedia, where he advised it on its regional investments, before which he worked at Goldman Sachs in Singapore. He has also been a member of committees advising Indonesia’s President Susilo Bambang Yudhoyono on bio-diesel, renewable energy and infrastructure development, according to the report.

Ancora Capital has offices in Jakarta, Hong Kong and Sydney.

Other private equity firms active in Indonesia include Arapima, a $150 million Southeast Asian fund focused on mid-market consumer and retail companies; Northstar, a firm backed by TPG Capital; Saratoga Capital Asia, which also makes investments in natural resources, infrastructure and distressed situations; and Quvat Management, a Singapore-based firm that focuses primarily on investments in Indonesia.