By Neil Halligan
October 29, 2024, 10:40 AM
A toll road platform backed by the Abu Dhabi Investment Authority (Adia) is set to invest in a significant section of the Trans-Sumatra Toll Road in Indonesia. The Indonesia Investment Authority (INA) announced on Monday that it has acquired investments for the Medan-Binjai (17 km) and Bakauheni-Terbanggi Besar (121 km) sections of the ambitious 2,765 km road project.
The combined enterprise value of these new assets is approximately $1.4 billion. This move aligns with INA’s strategy to invest $2.75 billion in toll roads across Indonesia, enhancing its platform that includes contributions from Adia and the Dutch pension fund APG.
Ridha Wirakusumah, CEO of INA, emphasized the significance of this investment, stating, “This not only solidifies our toll road platform but also establishes a scalable investment avenue for economic opportunities.”
The Trans-Sumatra Toll Road aims to enhance regional connectivity across the island, running from Banda Aceh in the north to Bakauheni in the south. Khadem Al Remeithi, Adia’s executive director of infrastructure, noted that developing a high-quality toll road network is vital for supporting Indonesia’s economic growth.
Sumatra contributed 22 percent to Indonesia’s GDP in the second quarter of 2024, highlighting its economic importance. The new toll road sections will serve key areas, including Medan, Indonesia’s fourth-largest city, and the crucial link between Java and Sumatra.
In addition to this recent investment, the toll road platform had previously announced investments in the Kanci-Pejagan and Pejagan-Pemalang sections of the Trans Java Toll Roads in January.
Adia is also broadening its investment footprint, recently opening an office in India to boost its operations in the country.
