JAKARTA/SINGAPORE (Reuters) – Indonesia’s sovereign wealth fund, Indonesia Investment Authority, or INA, said on Monday its toll road platform has invested in the Medan-Binjai and Bakauheni-Terbanggi Besar sections of the Trans Sumatra Toll Road.
INA said in a statement the move by its platform, which includes investments from the largest Dutch pension fund APG and Abu Dhabi Investment Authority, marks a continuation of the strategy to invest up to $2.75 billion in toll roads across Indonesia.
INA added that the combined enterprise value of the new assets is around $1.4 billion.
“This investment not only solidifies our toll road platform with APG and ADIA, it also expands our asset base, establishing a scalable investment platform that opens new avenues for economic opportunities,” INA CEO Ridha Wirakusumah said.
Sumatra, which the Trans Sumatra Toll Road runs across, is an island with over 58 million inhabitants and contributed 22.08% of Indonesia’s gross domestic product in the second quarter of 2024, according to the statement.
The Medan-Binjai section runs through Medan, the capital of north Sumatra and Indonesia’s fourth-largest city, while Bakauheni-Terbanggi Besar section serves as a link between the islands of Java and Sumatra, according to the statement.
INA said the strategic investment will stimulate the economy by unlocking Sumatra’s potential, potentially improve investment climate and facilitate wealth creation in the area.
(Reporting by Stanley Widianto in Jakarta and Yantoultra Ngui in Singapore; Editing by Stephen Coates)
