Jan 17, 2011

GIC eyeing projects in Indonesia

The government of Singapore Investment Corporation (GIC) is now paying a closer attention to Indonesia, as it seeks to beef up its current asset base there with new investments, including infrastructure.
GIC Executive Director and Deputy Chairman Tony Tan, quoted by the Straits Times after a five-day visit to Jakarta last week, said that GIC would, with its local partners, closely examine the various infrastructure projects offered by the Indonesian government.
These projects, ranging from a cruise terminal in Bali to a railway line betweem the Indonesian capital and the international airport, are being offered through a public-private partnership scheme and could have a government guarantee facilities attached.
"We would be interested in it because GIC has quite a lot of experience in investing in infrastructure [although], so far mainly in developed countries," Tan said.
GIC manages Singapore's reserves, which are in excess of U$100 billion. Its porfolio now spans 11 asset classes from Unired States treasury bills to private equity stakes.
In resource-rich Indonesia, GIC has invested mainly in natural resources, banking, and the consumer and retail sectors. Last month, it teamed up with US$ private equity firm TPG to take a stake in coal mining services company PT Delta Dunia Makmur Tbk (DOID). The deal was worth about US$400 million.
"I think not onlt GIC but also other companies would be very interested, given Indonesia's good fundamentals and obvious need for infrastructure investment," Tan said.

Disclosure: No position at the stock mentioned above.

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