Minister Luhut: Global Investment Partner to Invest Rp42tn

TEMPO.CO, Jakarta - Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan said that a foreign global investment institution Global Infrastructure Partner (GIP) will make a capital investment in Indonesia. Luhut said that the investment will reach up to USD 3 billion, or equals to Rp42 trillion.

"It's for next year, they prepared US$3 billion to invest in several infrastructures such as airport, electricity, and transmission. The plan is every year they will invest the stated amount for five consecutive years," Luhut said to media crew at his office on Thursday, December 12, 2019.

Luhut said that he had requested for the investment value to be increased in the second year. However, Luhut stated that GIP will make considerations on the investment value based on the fund absorption in the first year.

The agreement was made after Luhut hold a meeting with Jim Yong Kim, Vice Chairman and Partner of GIP on Thursday, December 12, 2019. Luhut explained that a GIP team has conducted meetings with the Coordinating Ministry for Maritime Affairs and Investment for two times before making the decision.

GIP is an infrastructure investment funds institution with major investments covering equities and selected bonds. The company headquarter is located in New York and is known for making investments mainly in the energy, transportation, and water and wastewater sector.

Luhut said that with GIP's investment in Indonesia will increase the diversity of investment origin country. Previously, Luhut said that an investment institution from black Rock had also made investments in Indonesia.

Luhut stated that GIP considers Indonesia as one of the investment destination countries with promising results. In addition, the institution has high confidence over President Joko Widodo's leadership.

DIAS PRASONGKO