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Indonesia's sovereign wealth fund, DP World agree on US$7.5 billion partnership

Indonesia's sovereign wealth fund, DP World agree on US$7.5 billion partnership

The corporate logo of DP World is seen at Jebel Ali Port in Dubai, United Arab Emirates, Dec 27, 2018. (File photo: REUTERS/Hamad I Mohammed)

JAKARTA: Indonesia's sovereign wealth fund has signed a US$7.5 billion deal with Dubai-based logistics company DP World to form a consortium over the long term to invest in seaports in the Southeast Asian country, both said on Sunday (Oct 31).

The consortium will explore investments in terminals, cargo park, land transport to and from ports and industrial zones, which will reduce Indonesia's logistics costs, DP World and the Indonesia Investment Authority said in a joint statement.

DP World will seek to leverage its joint investment platform with Canadian pension fund Caisse de depot et placement du Quebec (CDPQ), the statement said.

Indonesia's government launched its sovereign wealth fund in February, with an initial investment of US$5 billion.

The fund is tasked with expanding its assets to US$20 billion by attracting co-investors to fund infrastructure development in Southeast Asia's largest economy.

The United Arab Emirates said in March it will invest US$10 billion in the fund to be spent on projects in Indonesia.

In May, the Indonesia Investment Authority signed an agreement with CDPQ, APG Asset Management and Abu Dhabi Investment Authority to establish an investment platform worth US$3.75 billion that will focus on toll roads in Indonesia.

Source: Reuters/dv

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