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ADIA unit invests in Indonesian toll roads system

By Pramod Kumar
Dutch pension fund APG said the deal with ADIA is part of Indonesia’s bid to raise up to $2.75bn in investment in its toll road networks APG
Dutch pension fund APG said the deal with ADIA is part of Indonesia’s bid to raise up to $2.75bn in investment in its toll road networks

A wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA) has invested in Indonesia’s Trans Java Toll Roads, partnering with Dutch pension fund APG Asset Management and Indonesia’s sovereign wealth fund Indonesia Investment Authority (INA).

APG said the deal is part of Indonesia’s bid to raise up to $2.75 billion in investment in its toll road networks. No financial details for the deal were given.

The new road networks have helped reduce travel times between major urban centres and key industrial hubs and ports.

As one of the world’s fastest-growing economies, Indonesia is developing its infrastructure to support increased industrialisation and more efficient supply chains, stated Khadem Alremeithi, executive director of the infrastructure department at ADIA.

“The Trans Java Toll Road is a key part of these plans. We continue to seek additional opportunities to invest in Indonesia toll roads,” he added.

“Infrastructure remains a foundational need for supporting the region’s economic growth and delivers stable, risk-adjusted returns for the benefit of APG’s pension fund clients and their participants,” said Hans-Martin Aerts, head of infrastructure and natural resources at APG Asset Management Asia-Pacific.

The toll road platform introduces significant global expertise to the project in line with INA’s objectives to diversify risk and optimise capital allocation.

The deal is part of UAE’s pivot towards the east for investment opportunities, as the Gulf state seeks to increase non-oil trade to $1.1 trillion (AED4 trillion) by 2031.

The Emirates has finalised comprehensive economic partnership agreements in the bag with India, South Korea, Indonesia and Cambodia. Talks are continuing with Thailand, Vietnam, the Philippines and Malaysia.

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