APG will invest via Indonesia Investment Authority’s (INA) toll road platform in the Medan-Binjai and Bakauheni-Terbanggi Besar sections of the Trans Sumatra Toll Road. It will make the investment alongside a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA).
The sections serve as a continuation of INA’s toll road platform's strategy, which includes the previous Kanci-Pejagan and Pejagan-Pemalang sections of the Trans Java Toll Road, targeting up to USD 2.75 billion of toll road investments across Indonesia. The combined enterprise value of these new assets is approximately USD 1.4 billion, aiming to contribute to the ongoing development of Indonesia's transportation infrastructure.
Hans-Martin Aerts, Head of Infrastructure & Private Natural Capital at APG Asset Management Asia-Pacific said, “Our investment in the Trans Sumatra Toll Road reflects our confidence in the enduring benefits that high quality infrastructure will create in Indonesia towards equitable and sustainable growth. In collaboration with our partners, we aim to strengthen the connectivity between key developmental hubs, helping accelerate economic activity and access to new opportunities across industries in Sumatra.” According to Aerts, the initiative “demonstrates the foundational role that infrastructure holds in Asia for helping dispersed local economies connect and advance to the next level, impacting wide-ranging communities while delivering stable growth over the long-term.”
INA is Indonesia’s sovereign wealth fund mandated to increase investment to support the country’s sustainable development and build wealth for its future generations. ADIA is a globally diversified investment institution that invests funds on behalf of the Government of Abu Dhabi.
See the full press release and the article on the original investment in the Trans Java Toll Road.