- Investment is a boost to Indonesia's infrastructure projects and accelerate progress of the toll road PPP
- This equity investment by SMI and Taspen is the pilot project of Government's program known as Non-State Budget Investment Financing for Infrastructure (Pembiayaan Investasi Non-APBN untuk infrastruktur or "PINA")
- PT Waskita Toll Road currently has more than 14 toll road projects located in Java Island and Sumatera Island, Indonesia.
Oentoeng Suria & Partners ("OSP"), an associated firm of Ashurst, is pleased to have advised PT Sarana Multi Infrastruktur (Persero) (SMI) and PT Dana Tabungan Dan Asuransi Pegawai Negeri (Persero) (Taspen) on their equity investment of 29% of shares in PT Waskita Toll Road, a subsidiary of state-owned PT Waskita Karya Tbk (WSKT). This follows announcements by the Indonesia government late last year of their plans to employ the use of long-term financial resources including pension funds that can be transferred into equity financing for public projects.
The closing of the transaction was undertaken today before the President of the Republic of Indonesia, Mr. Joko Widodo.
The initial equity investment by SMI and Taspen, worth [Rp3.5trillion] and in the future, the equity investment may be increased and it is expected to have a significant contribution towards the construction of the toll road infrastructure in Indonesia especially toll road projects under PT Waskita Toll Road. PT Waskita Toll Road is currently working on more than 14 toll projects with a total length of 750 km, including several toll road projects being the part of the trans-Java toll road linking Jakarta and Surabaya, due for completion in 2018-2019. PT Waskita Toll Road's trans-Java toll road project will help to smooth transportation on the island, and will be the first project financed by pension funds.
This equity investment transaction is the pilot project for the Government's program known as "Non-State Budget Investment Financing" for Infrastructure (Pembiayaan Investasi Non-APBN untuk infrastruktur or "PINA"). In the future, the Government will try to boost the PINA program to accelerate and expedite the development of infrastructure projects and SMI and Taspen's equity investment in PT Waskita Toll Road will be a landmark project for PINA program.
The OSP team is led by partner Ratih (Ipop) Nawangsari and supported by senior associate Rizaldy Tauhid. Commenting on the firm's involvement in this deal, Ipop says, "We are very proud to be part of this investment project which is one of the first in the country, and confident that it will contribute towards further improvement on infrastructure projects in Indonesia".
