Dubai-based logistics firm DP World has signed a USD 7.5 billion contract with Indonesia’s sovereign wealth fund to fabricate an investment consortium for a long-term period, to invest in sea harbours in the Southeast Asian nation, the two entities started on 31st October 2021 (Sunday).
The investment venture will reconnoitre investments in cargo parks, terminals, land transportation to and from industrial zones and ports, which will diminish Indonesia’s logistics expenses, stated the Indonesia Investment Authority (INA) and DP World in a conjoined statement.
DP World and Indonesia Investment Authority (INA) collaborate
Indonesia is the biggest archipelago on the globe with over 17,000 islands. The Indonesia Investment Authority (INA) authenticated a premeditated coalition agreement with the Dubai-based DP World that is possessed by Dubai World.
The contract targets to enhance Indonesia’s maritime and port division with standards of a global manufacturing ecosystem. The economic worth of this collaboration is estimated to reach the USD 7.5 billion thresholds, over a long-term period.
The Indonesia Investment Authority and DP World will form an investment conglomerate to discover investments into the Indonesian logistics infrastructure, inclusive of inland terminals, hinterland investments, feeder network systems, cargo parks, landside transport, and industrial precincts. They will also venture into a collaboration with the Indonesia Port Corporations.
DP World will look to influence its conjoined investment space with Caisse de dépôt et placement du Québec, which has invested in a dozen port terminals globally, throughout a plethora of stages of the asset lifecycle, since its launch in 2016.
The Indonesian government released its sovereign wealth fund in February 2021, with a preliminary investment of USD 5 billion.
The finances are entrusted with extending its assets to USD 20 billion by enticing co-investors to finance the infrastructure development in Southeast Asia’s biggest economy – Indonesia.
The UAE said in March 2021, that it will invest USD 10 billion in the fund to be expended on Indonesian projects.
In May 2021, the Indonesia Investment Authority authenticated a contract with Caisse de dépôt et placement du Québec, Abu Dhabi Investment Authority, and APG Asset Management to fabricate an investment platform worth USD 3.75 billion that will target tollways in Indonesia.
About DP World
DP World is one of the leading providers of smart logistics solutions, allowing the facilitation of trade worldwide. The firm anticipates change, thinks ahead, and deploys industry-standard technology to fabricate the most efficient, smartest, and innovative trade solutions. All this whilst ensuring a positive and sustainable effect on societies, economies, and the Earth.
The firm’s all-inclusive range of services and products encompasses every nook and corner of the integrated supply chain – from inland terminals and maritime terminals to industrial parks and marine services, as well as tech-centric customer solutions. The firm delivers all its services via an interconnected global network of 181 business establishments across 6 continents (64 countries).
The firm houses a versatile, committed, and professional team of over 56,000 employees hailing from 140 nationalities. The firm facilitates beneficial relationships with shippers, governments, traders, and other stakeholders along the global supply chain to ensure profitable and meaningful returns.
About Indonesia Investment Authority
The Indonesia Investment Authority is the Indonesian sovereign wealth fund. Through the investment of finances, the entity builds wealth for the coming generations and enhances Indonesia’s sustainable economic development.
As a new-fangled establishment, the Government of Indonesia has devoted itself to dedicating the Indonesia Investment Authority with a capital of USD 5 billion by 2021, out of which USD 1 billion was dedicated in the dusk of 2020. As a faction of the firm’s investment strategy, the Indonesia Investment Authority is seeking to partner with reliable investors (local and global) to invest in Indonesian assets. The Indonesia Investment Authority is aiming to mature its assets under management (AUM) to USD 20 billion.
