The $201 billion Future Fund is among the investors heading to Jakarta to scout out opportunities as foreign pension funds make a $3 billion-plus move on toll roads on Java and Sumatra.
| Australian workers, through their superannuation funds, are among investors looking at toll roads, seaports and other infrastructure opportunities in Indonesia as theRenewable energy projects are also in the mix as Indonesia’s decarbonisation push gathers momentum with significant investment in hydropower, biofuel, geothermal, wind and solar under way across the archipelago nation of 280 million.
The Australian visit comes as a consortium comprising the INA, Canada’s CDPQ, the Dutch APG, and a subsidiary of the Abu Dhabi Investment Authority moves to complete a deal under which it will own about 20 per cent of all Indonesia’s toll roads through anThe asset transfer from debt-heavy state-owned companies to the consortium will be a milestone event for the authority and President Joko Widodo’s reform program.
“The CDPQ and the APG are pension funds, not unlike Australia’s superannuation funds. They are extremely focused on optimal returns. This isn’t a charity for them. They are not going to do deals unless they promise extremely attractive returns. These transactions tick that box and show the world Indonesia means business.”The INA offers international investors an opportunity to invest in Indonesia’s “large and vibrant economy”, according to a Lowy Institute analysis released last month.
“I think the issue is not the quality of the projects, rather it’s the term of investment. State-backed investors have a super long-term horizon. Institutional investors would be more likely to have, say, a five-year horizon,” Mr Kim said,Geopolitics could also assist as the US and China compete for influence in South-East Asia. The US embassy is understood to have been in touch with the INA soon after the Silk Road Fund made its interest known in July.
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