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Indonesia to invest $2.72 billion in toll roads on Sumatra and Java

Christian Fernsby |
Indonesia’s sovereign wealth fund signed two agreements to invest in toll roads on the islands of Sumatra and Java worth more than 39 trillion rupiah ($2.72 billion), President Joko Widodo said.

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The Indonesia Investment Authority (INA) signed a heads of agreement with state construction firm Hutama Karya to invest in three parts of the Trans Sumatra toll road, said Finance Minister Sri Mulyani Indrawati, who also attended the signing ceremony in Jakarta.

INA also signed a confirmation on the start of a transaction with Waskita Toll Road, a unit of another state-owned construction firm, Waskita Karya , for two parts of the Trans Java toll road, she said.

The signings and INA’s good governance would create greater trust in infrastructure financing in Southeast Asia’s largest economy, from both domestic and international investors, Jokowi, as the president is popularly known, said.

“I think this kind of financing scheme we will continue to develop,” he said. “God willing, bigger investors will come to Indonesia via the INA and not just (investing in) toll roads but also big projects that will affect the economy.”


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