Indonesia’s sovereign wealth fund (INA) on Tuesday announced the completion of the transaction related to investments in two sections of the Trans Java toll road owned by Indonesia-listed infrastructure company Waskita Karya.
INA’s investments in the toll road projects will be conducted through its subsidiaries PT Rafflesia Investasi Indonesia (RII) and PT Abhinaya Investasi Indonesia (AII), according to a media statement.
The partnership will strengthen Waskita Karya’s cash flow to accelerate the development of other toll road projects in Indonesia, President Director Destiawan Soewardjono said.
INA CEO Ridha Wirakusumah said “the agreement is a great step forward in our efforts to disburse investments for the development of key infrastructure, especially toll roads. We hope this transaction will be followed by other sectors and could encourage economic growth and create a real impact in optimising economic potential in Java.”
The transaction was supported by partner banks and financial institutions including state lenders PT Bank Negara Indonesia and PT Bank Mandiri, state infrastructure firm PT Sarana Multi Infrastruktur and regional development lender PT Bank Pembangunan Daerah Jawa Tengah.
INA first announced the signing of two agreements to invest in toll roads on the islands of Sumatra and Java worth more than 39 trillion rupiah ($2.72 billion) in April this year.
INA had signed heads of agreement with state construction firm Hutama Karya to invest in three parts of the Trans Sumatra toll road. INA had also signed confirmation on the start of a transaction with Waskita Toll Road, a unit of Waskita Karya, for two parts of the Trans Java toll road.
The agreements were INA‘s 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 co-investors.