Canadian public pension fund Caisse de dépôt et placement du Québec (CDPQ) has partnered with Dubai’s DP World to back a container port and logistics park in East Java. The push into Indonesian infrastructure comes after the Canadian fund committed up to US$2 billion to the first US$15.5 billion tranche of Indonesia’s sovereign wealth fund the Indonesia Investment Authority (INA) at the end of December 2020.
Supply chain logistics specialist DP World and CDPQ signed an agreement with the privately owned conglomerate Maspion Group for the US$1.2 billion project. It will begin construction in Q321 with commercial operations beginning in 2023. CDPQ and DP World established a US$8.2 billion platform four years ago to invest in 10 port terminals across the world.
With no office yet in Indonesia, CDPQ is looking to co-investments and backing INA. CDPQ’s potential investment in INA contrasts with its decision not to initially commit capital to India’s National Investment and Infrastructure Fund (NIIF), preferring instead to forge its own way in finding investment opportunities via its Delhi office.
Indonesia is virgin territory for CDPQ, whereas in India it has deployed over US$3.5 billion in direct investment, 46% of which has gone into infrastructure, 17% in real estate and the rest in private equity mostly in the financial services sector.