A regional funding mechanism Aby and for Indigenous Peoples of Asia was conceived during a regional consultation workshop on 31 July to 1 August 2022 held in Siem Reap, Cambodia. This gathering had 26 Indigenous Peoples Organizations (IPOs) representing 13 countries of Asia. All the IP representatives in the regional consultation agreed to establish the funding mechanism with an aim to address the limited access of Indigenous Peoples in Asia to the $1.7 billion forest tenure pledge committed at COP 26 in 2021 as well as other funds.

An ad-hoc Steering Committee comprised of 6 members with gender balance was formed in this workshop to further gather inputs from Indigenous Peoples Organizations and develop the concept and related policies and guidelines and organize a regional assembly for its establishment. From 30 March to 3 April 2023, the regional assembly was held in Bali, Indonesia after a self-selection process of 95 Indigenous Peoples representatives representing 13 countries in Asia including the organizations and networks of Indigenous youth, Indigenous women, and Indigenous persons with disabilities.

The IPAS Fund's main purpose is to provide direct access of Indigenous Peoples in Asia to external funds addressing their specific challenges, such as language barriers, restrictions from governments, and capacity issues. The IPAS fund acknowledges and seeks to build on the support of existing donors while encouraging additional donors to change their approach from project-based to core funding and building and strengthening solidarity relations based on trust and mutual accountability. It, also, aims to reach grassroots Indigenous groups, including women's organizations, youth, and persons with disabilities.