An agreement for a US$3.75 billion infrastructure platform marks the first investment vehicle for the Indonesia Investment Authority (INA), backed by ADIA, CDPQ and APG. The consortium will invest in toll roads with assessments of opportunities over the next six months.
Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ, said: “For CDPQ, Indonesia stands out as an attractive place to invest in, especially in the infrastructure sector. This MOU is an opportunity to jointly build a portfolio of critical road assets in one of the fastest growing economies in the world, and would allow us to combine INA’s in-depth knowledge of the market and local networks with CDPQ, APG and ADIA’s international infrastructure expertise.”
The INA successfully closed the first tranche in December for US$ 15.5 billion with commitments from the Indonesian government, the US International Development Finance Corporation, Japan Bank for International Cooperation, CDPQ and APG. The INA is modelled on India's National Investment and Infrastructure Fund (NIIF) and acts as a catalyst of foreign direct investment into the country's infrastructure.
CDPQ has independently invested in Indonesian infrastructure. In March, it partnered with Dubai’s DP World to back a container port and logistics park in East Java. 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.