INA, CDPQ, APG, and ADIA sign memorandum of understanding to establish Indonesia’s first infrastructure investment platform

Indonesia Investment Authority (INA), Caisse de dépôt et placement du Québec (CDPQ), APG Asset Management (APG), and a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) today signed a Memorandum of Understanding (MOU) to establish Indonesia’s first infrastructure-focused investment platform and INA’s first investment vehicle since its establishment.

Through this MOU, INA plans to explore opportunities for joint investments in partnership with CDPQ, APG and ADIA in Indonesian toll-road assets. The Investment Platform would be the consortium members’ primary vehicle for toll road investments in Indonesia. Over the next six months, the consortium has agreed to evaluate a set of initial toll road investment opportunities that would form the operating base of the Investment Platform. Once established, the Investment Platform will continuously look for investment opportunities in the toll road sector to add to its portfolio over time. Subject to availability of commercial assets, the Investment Platform is envisioned to have an investment capacity of up to approximately IDR 54 trillion or USD 3.75 billion.

INA together with three globally reputable investment institutions – CDPQ, APG, and ADIA – intends on generating optimal returns to investors while bringing economic benefits to Indonesia through alternative way of financing with the aim to further improve the toll road ecosystem. This is in line with INA’s vision of bringing economic benefit and job creation to Indonesia.

INA has been entrusted with IDR 15 trillion (approximately USD 1 billion) to be followed by an additional injection of IDR 60 trillion (approximately USD 4 billions) in 2021. The creation of INA’s first Investment Platform has been made possible by the strong support from Government of Indonesia that paved the way for the creation and promotion of INA to leading global investors.

DR. Ridha D. M. Wirakusumah, Chief Executive Officer of INA, states: “We are truly delighted to be able to work with leading investors from around the world for our first ever Investment Platform. This demonstrates the confidence that global investors have in the Indonesian economic potentials even in this challenging economic environment. We believe this is a positive start for more collaborations between us and other investors in multiple sectors in Indonesia.”

“On behalf of INA, I would like to extend our most sincere gratitude to the consortium members – CDPQ, APG, and ADIA – who join hands with INA in our maiden investment platform, to the ministries for their strong support, and to the relevant State-Owned Enterprises for their cooperation”, DR. Wirakusumah added. 

Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ, said: “For CDPQ, Indonesia stands out as an attractive place to invest in, especially in the infrastructure sector. This MOU is an opportunity to jointly build a portfolio of critical road assets in one of the fastest growing economies in the world, and would allow us to combine INA’s in-depth knowledge of the market and local networks with CDPQ, APG and ADIA’s international infrastructure expertise.”

Hans-Martin Aerts, Head of Infrastructure at APG Asset Management Asia, said: “We are pleased to partner with INA for its inaugural investment platform which will support further infrastructure investment in Indonesia. APG, as a long-term sustainable investor for its pension fund clients such as ABP, sees long-term collaborative relationships as the foundation of success in the execution of its investment strategy. We welcome the opportunity to work with CDPQ and ADIA on this initiative and to deliver substantial benefit to the investment platform through the application of best practices in operational performance and corporate governance.”

Khadem Alremeithi, Executive Director of the Real Estate & Infrastructure Department at ADIA, said: “Indonesia is an increasingly attractive market for international investors, with a growing, dynamic economy backed by positive demographic trends. Over a number of months, we have worked closely with the INA to develop a better understanding of each other’s objectives and we are pleased that those discussions have led to ADIA’s involvement in INA’s first investment platform alongside other reputed, long-term investors.”