Indonesias wealth fund signs $2.7 billion toll road investment

div classBodysc17zpet90 cdBBJodivpBy Stefanno Sulaiman and Gayatri Suroyop

pJAKARTA Reuters – Indonesias sovereign wealth fund on Thursday signed two agreements to invest in toll roads on the islands of Sumatra and Java worth more than 39 trillion rupiah 2.72 billion, President Joko Widodo said.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe Indonesia Investment Authority INA signed a heads of agreement with state construction firm Hutama Karya to invest in three parts of the Trans Sumatra toll road, said Finance Minister Sri Mulyani Indrawati, who also attended the signing ceremony in Jakarta. p

pINA also signed a confirmation on the start of a transaction with Waskita Toll Road, a unit of another stateowned construction firm, Waskita Karya <WSKT,JK>, for two parts of the Trans Java toll road, she said. p

pThe signings are INAs first concrete steps since forming a toll road fund last year of up to 3.75 billion, with Caisse de dépôt et placement du Québec CDPQ, APG Asset Management APG and a unit of the Abu Dhabi Investment Authority ADIA as coinvestors.p

pThe signings and INA‘s good governance would create greater trust in infrastructure financing in Southeast Asia’s largest economy, from both domestic and international investors, Jokowi, as the president is popularly known, said. p

p“I think this kind of financing scheme we will continue to develop,” he said. “God willing, bigger investors will come to Indonesia via the INA and not just investing in toll roads but also big projects that will affect the economy.”p

pINAs chief executive Ridha Wirakusumah said other projects that the fund is considering to invest in this year include sea ports, geothermal and healthcare projects.p

pThe wealth funds assets under management amounted to nearly 6 billion, but it aims to grow the figure to between 15 billion to 20 billion within three years supported by help from coinvestors, the CEO told Reuters last month.p

pUnlike many other sovereign wealth funds, which manage excess oil revenues or foreign exchange reserves, the INA seeks foreign funds as coinvestors to finance the countrys economic development.p

p1 14,350.0000 rupiahp