Investors establish Indonesia’s first infrastructure platform

Out-Law News | 27 May 2021 | 2:23 am |

The Indonesia Investment Authority (INA) and three other investment groups have established Indonesia’s first infrastructure investment platform.

The platform is expected to have IDR 54 trillion ($3.75 billion) to invest. This will be INA's first investment platform since it was set up to explore opportunities for joint investment in toll roads in Indonesia, said a statement.

The platform will explore investments in Indonesian toll road assets. In the next six months, they will evaluate a set of initial toll road investments which would form the operating base of the new investment platform.

John Yeap of Pinsent Masons, the law firm behind Out-Law, said: “It is encouraging to see the INA making swift progress through the setting up of this first infrastructure platform. Indonesia’s infrastructure needs are significant, particularly in transportation which is a priority focus for the archipelagic nation as it seeks to improve connectivity across the country.”

Other investors include Caisse de dépôt et placement du Québec (CDPQ), APG Asset Management (APG) and a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA).

INA was launched in February and received a $1.1bn fund for startup capital from the Indonesian government’s 2020 budget and another $5.4bn from the 2021 budget. It is expected to help Indonesia’s domestic and foreign investors raise funds to finance development programmes, especially domestic infrastructure programmes.