JAKARTA - The Indonesia Investment Authority (INA) toll road platform, which involves investment from APG Asset Management (APG) and its subsidiary Abu Dhabi Investment Authority (ADIA), announced investments in the Medan-Binjai (MB) and Bakauheni-Berbanggi Besar (BTB) sections on the Trans Sumatra Toll Road (JTTS).

This investment is a continuation of the investment platform strategy, which includes the Kanci-Pejagan and Pejagan-Pemalang sections on the Trans Java Toll Road, with an investment target of up to 2.75 billion US dollars or around IDR 43 trillion in various toll road networks throughout Indonesia.

"The combined value of these new assets is around US$1.4 billion or Rp21 trillion which aims to contribute to the ongoing development of Indonesia's transportation infrastructure," said Chairman of the Board of Directors of INA Ridha Wirakusumah in a statement, in Jakarta, quoted from Antara, Monday, October 28.

Ridha explained that JTTS is an important part of Indonesia's strategy to promote equitable economic growth, especially in Sumatra.

Based on data from the Central Statistics Agency (BPS), Sumatra has more than 58 million inhabitants and accounts for 22.08 percent of the national Gross Domestic Product (GDP) in the second quarter of 2024.

This development initiative covers 17 kilometers of Medan-Binjai (km) and 141 km of Bakauheni-Terbanggi Besar sections, both of which are very important to improve regional connectivity and economic impacts.

The Medan-Binjai toll road passes through Medan, the capital city of North Sumatra and the fourth largest city in Indonesia, and is the main development center along with Jakarta, Surabaya, and Makassar.

Meanwhile, the Bakauheni-Terbanggi Besar Toll Road in Lampung acts as an important link between Java and Sumatra, with Bakauheni Port, Lampung which facilitates connections to Merak Port, Banten, in Java.

In addition, this section's strategic interests are further emphasized through its closeness to the Panjang Port in Bandarlampung, and increasing economic activity in South Sumatra.

This very strategic toll road will serve as a vital transportation arterial that can strengthen logistics networks and improve access to various services in all important economic corridors in Sumatra.

Furthermore, Ridha said that INA's initiative is in line with the direction of the Supervisory Board so that INA is in accordance with its vision, continues to develop sustainable and inclusive infrastructure throughout Indonesia.

This investment is an example of a collaborative strategy between INA, as Indonesia's sovereign wealth fund, and global investors. Involvement of investors such as APG and ADIA reflects collective efforts in managing large infrastructure projects, affirming an integrated approach to improving infrastructure development.

In addition, this effort marks an important step in INA's ongoing commitment to support economic growth and strengthen Indonesia's position as a key player in the global economy.

"This investment not only strengthens our toll road platforms with APG and ADIA, but also expands our asset base, building large-scale investment platforms, which can open up new economic opportunities," he also said.

Head of Infrastructure & Private Natural Capital APG Asset Management Asia-Pacific Hans-Martin Aerts said the investment disbursed reflects the company's confidence in the long-term benefits that high-quality infrastructure will create in Indonesia to achieve equitable and sustainable growth.

"This initiative shows the fundamental role of infrastructure in Asia has in helping the local economy spread to connect and advance to the next level, impacting the wider community as well as providing stable growth in the long term," he said.

The expansion of JTTS aims to increase regional connectivity and economic integration. This strategic investment not only plays a stimulus for the economy by opening up Sumatra's potential, but also has the potential to increase the investment climate and facilitate improving welfare in the area.

This effort is considered to be an integral part of optimizing Indonesia's infrastructure and supporting sustainable economic growth throughout the archipelago.


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