Indonesia's Wealth Fund to Invest in Expansion of Port in Malacca Straits

[Indos]

Indonesia's wealth fund to invest in expansion of port in Malacca Straits​

By Reuters Staff
BANKING AND FINANCIAL NEWS
AUGUST 25, 20224:51 PM
UPDATED 5 DAYS AGO

Belawan Port Terminal operated by Pelindo



JAKARTA, Aug 25 (Reuters) - Indonesian state-owned port operator Pelindo and a consortium of the country’s sovereign wealth fund and logistics firm DP World have agreed to invest in the expansion of the Belawan port in Sumatra island, the companies said on Thursday.

The deal, the value of which was not disclosed, is part of a $7.5 billion partnership between the Indonesia Investment Authority (INA) and Dubai-based DP World, according to a joint statement issued by Pelindo and the INA.

Under the agreement, Pelindo and the consortium will manage the Belawan New Container Terminal (BNCT) with an aim to transform the port by increasing terminal capacity, direct calls, and its connectivity with other small ports.

Belawan, located in the northeastern coast of Sumatra island, is currently a feeder for other large ports in the vicinity, including in neighbouring Singapore and Malaysia. The port handles some of Indonesia’s shipments of palm oil and other plantation products.

The deal covers plans for investment to more than double BNCT’s capacity to 1.4 million twenty-foot equivalent units (TEUs) in the next six years, which would strengthen Belawan’s position in the Malacca Straits, the firms said. (Reporting by Gayatri Suroyo Editing by Mark Potter)

Indonesia's wealth fund to invest in expansion of port in Malacca Straits

Indonesian state-owned port operator Pelindo and a consortium of the country's sovereign wealth fund and logistics firm DP World have agreed to invest in the expansion of the Belawan port in Sumatra island, the companies said on Thursday.

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[Indos]

This move is not solely intended to bring more cargoes and compete with ports in Singapore and Malaysia, but it is also intended to develop Sumatra island even more

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2023, Indonesia Stops Gas Supply to Singapore​

Thursday, 6 February 2020 - Dibaca 2669 kali

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 060.Pers/04/SJI/2020

Date: 6 February 2020

2023, Indonesia Stops Gas Supply to Singapore​

The government confirms it will stop pipeline gas to Singapore. The termination will start in three years in order to meet the domestic demand for gas.

Head of Downstream Oil and Gas Regulating Agency (BPH Migas), Fansurullah Asa, asserted the government was currently looking for domestic markets to absorb the diverted gas supplies. "Because in 2023 gas exports to Singapore are stopped, the gas must be delivered somewhere (to which market)," said Head of BPH, whose nickname is Ifan, at BPH Migas building in Jakarta, Wednesday (5/2).

The decision confirms the previous statement of Minister of EMR, Arifin Tasrif, at a work meeting with Commission VII of House of Representatives. "Gas is in abundance in Sumatra, supplies to Singapore which will end in 2023 will be diverted to domestic markets," said Arifin last November.

The plan is to channel the gas formerly supplied to Singapore to the Duri Dumai pipelines, and later send it to industrial estates in Sumatra. The gas to be sold to the industrial estates is priced at USD6 per MMBTU, according to the rules in Presidential Regulation Number 40 of 2016 on Pricing of Natural Gas.

This plan, added Ifan, is expected to create added value and to reduce trade balance deficit due to the conversion from oil fuels to gas.

To date, gas supplies to Singapore come from Corridor Block managed by ConocoPhillips which amount to 300 Million Standard Cubic Feet per Day (MMSCFD). To support the transfer of gas supplies, the government has prepared the infrastructure by developing transmission pipelines such as Dumai-KEK Seimangke and Distribution Network Area (WJD). "There are 193 WJD's proposed by Business Entities," concluded Ifan. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

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2023, Indonesia Stops Gas Supply to Singapore

MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA PRESS RELEASE NUMBER: 060.Pers/04/SJI/2020 Date: 6 February 2020 2023, Indonesia Stops Gas Supply to Singapore The government confirms it will stop pipeline gas...

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The $37BN Road That's Changing a Country​

999,938

This giant project is conducted by another SOE company, PT Hutama Karya, that specializes in construction.

 

[Indos]

RCEP is now ratified by our parliament. Indonesia is now ready to join the largest trade deal where all Eastern Asia nations are inside it, including Australia and New Zealand.

Tok! DPR Restui RI Masuk Perjanjian Perdagangan Terbesar

DPR RI menyetujui pengesahan Rancangan Undang-Undang ratifikasi RCEP.

www.cnbcindonesia.com

The improvement and expansion of our port in Malacca strait is inline with this trade agreement.

Another big port in Malacca strait is Kuala Tanjung in North Sumatra, the same province where Belawan port is located. Both are also operated by Pelindo.

Kuala Tanjung Port, North Sumatra

 

[Indos]

INA's Investment Managed Fund Has Reached US$ 31 Billion​

4 hours ago

KONTAN.CO.ID - JAKARTA. Investment Management Institution aka Indonesia Investment Authority (INA) continues to run. Currently, INA's total asset under management (AUM) has reached US$ 31 billion.

INA spokesperson Masyita Cyrstallin explained that the funds managed by INA include subsidiaries of the Abu Dhabi Investment Authority (ADIA), Caisse de dépôt et placement du Québec (CDPQ), and APG Asset Management (APG) with a total of US$ 3 billion.

Then, from the Abu Dhabi Growth Fund (ADG) of US$ 10 billion, Dubai Ports World (DP World Dubai), and US$ 7.5 billion.

These funds are used, one of which is for a number of SOE projects, including toll roads such as four toll roads owned by PT Waskita Karya (Persero) Tbk, ports, airports, digital infrastructure, health, traditional energy, renewable energy, industrial estates, and finally plantation agriculture.

Also Read: Sri Mulyani to Bankers: You Dance on the Suffering of Others

In addition, the government also provided initial capital to INA of US$ 5 billion or Rp 75 trillion. The paid-up capital came from two sources, worth IDR 15 trillion from the 2021 state budget while IDR 45 trillion came from the transfer of government-owned series B shares in two state owned banks PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) and PT Bank Mandiri (Persero) Tbk (BMRI).

The next investor is the Investment Fund for Developing Countries (IFU) from the Kingdom of Denmark to explore investment opportunities for the green energy transition and inclusive social development in Indonesia. The value of the investaso given is US$ 500 million.

The deal covers the prospect of joint investment in renewable energy, water, waste management and other circular economies.

Then, funds of US$ 2 billion from Contemporary Amperex Technology Co., Limited (CATL) and CMB International for the development of electric-based vehicles or electric vehicles (EVs). There is also the Silk Road Fund (SRF) from China which injected US$ 3 billion for investment in the healthcare and digital sectors.

Masyita previously said that in the future, there are still other partners such as ADG who are also ready to channel billions of US dollars of investment for future investments.

However, Masyita is still reluctant to specify which projects the INA is aiming for in the future. To be sure, INA has 3 criteria in sorting out projects to invest in.

First, the project must be commercial in nature, providing optimum returns to investors and investees. Second, projects have an impact on Indonesia's economic development in the long term.

Third, the project brings added value to the selected project, for example added value in the form of global network, global expertise, GCG or ESG improvement.

Also Read: Sri Mulyani Optimistic that Indonesia's Economy will Be Better in 2023, This is the Driver

"According to the investment principle, INA cannot tell anything (including the name of the future project that is the target of investment until the deals are completely closed," Masyita said at the time.

For information, President Joko Widodo targets INA's managed funds to reach US$ 200 billion in the next three years.

Masyita said that numbers are not the only benchmark for progress. Every cooperation agreement with partners, INA is committed to taking the initiative to increase Indonesia's competitiveness to achieve broader sustainable development and grow wealth for future generations of Indonesians.

We are working hard to achieve the goal of growing wealth for the current and future generations of Indonesians," she added.

MSN

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[Indos]

Investments in ports foretell the future of global commerce

It will be more high-tech—and more Asian

www.economist.com