Sign the Cooperation Agreement, INA Must Show Credibility of Investment Management
Jakarta, 14/04/2022 MoF – The agreement between the Indonesia Investment Authority (INA) and PT Hutama Karya (Persero) and PT Waskita Toll Road is an important milestone for Indonesia in realizing development financing through alternative sources other than debt (non-APBN). Minister of Finance (Menkeu) Sri Mulyani Indrawati said that the formation of INA was an important momentum for Indonesia. Creative financing is developed through a credible platform so that Indonesia can cooperate with investors from various sources. With governance that follows international standards, INA is expected to be able to attract long-term equity investments. Thus, this will provide additional stability for development in Indonesia.
“The desire of investors to take risks together certainly requires confidence. Therefore, a co-investment strategy that can increase our investment modalities, especially funds that have been included in INA, is a gamble on Indonesia’s ability to provide a balance on the one hand, namely convincing investors about an acceptable level of risk, on the other hand it also provides a guarantee of investment certainty. , “explained the Minister of Finance on Thursday (14/04).
The Minister of Finance explained that last year INA signed a Memorandum of Understanding (MoU) to form an investment platform in the form of a consortium with an investment commitment of up to USD3.7 billion for investment in various toll road areas with global strategic partners. The global strategic partners are ADIA, which is the Sovereign Wealth Fund of the United Arab Emirates, APG, the Dutch pension fund management agency, and CDPQ, the Canadian pension fund management agency.
Investment offers for BUMN assets are also carried out, especially for the Trans Sumatra toll road and the Trans Java toll road. INA together with its strategic investor partners have conducted evaluations and discussions to see the investment potential of toll road assets in Sumatra and toll roads in Java.
“INA together with a consortium with state-owned asset owners, namely PT Hutama Karya and PT Waskita Karya, especially Waskita Toll Road, conduct professional negotiations and make decisions based on business judgment rules by taking into account the wishes of investors and the wishes of asset owners, namely SOEs (Hutama Karya and Waskita Karya),” continued the Minister of Finance.
INA’s MoU with strategic partners is one of the efforts to build the reputation of the INA platform. This is also a signal for the world to see how Indonesia is doing its investment business in infrastructure in a credible manner. The various investment decisions in the MoU are ensured to follow the corridors of the applicable laws and regulations and are based on good governance. There is no conflict of interest and based on good governance.
“With the dynamics that continue to occur, the negotiations between INA and PT Hutama Karya and Waskita Toll Road have made significant progress. Today we witnessed INA signing a head of agreement with PT Hutama Karya for a joint investment plan in a number of toll roads, both the Trans Sumatra toll road and confirmation of the commencement of transactions with PT Waskita Toll Road for a joint investment plan in a number of toll roads in Indonesia. Trans Java,” continued the Minister of Finance.
The signing of the master agreement between INA and PT Hutama Karya was carried out for investments in three trans-Sumatra toll roads, namely Medan-Binjai along 17 km, Bakauheni-Terbanggi Besar for 141 km, and Terbanggi Besar- Pematang Panggang and Kayuagung for 189 km. Meanwhile, for the INA agreement with Waskita Karya, there are two Trans Java toll roads, namely Kanci-Pejagan along 35 km and Pejagan-Pemalang along 58 km.
“This transaction is a safe long-term investment transaction and provides stable income for INA which is owned by the government as a whole. And also at the same time, this transaction provides new fresh funds for PT Hutama Karya and Waskita Karya, because they are still being given the mission to continue the construction of the Trans Sumatra toll road which has now been completed for 6 sections along 531 kilometers with a total target of 24 sections along 2800 km,” explained the Minister of Finance (nug/mr/hpy)
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