JAKARTA (TheInsiderStories) – State-owned enterprises (SOEs) are preparing billion-dollar projects to get fresh fund through Indonesia Investment Authority (INA). The energy holding, PT Pertamina, has prepared 17 projects and is eyeing US$5o billion in fresh funds from the divestment of assets through the sovereign wealth fund.
Then, the state-owned construction firms also looking the potential to raises funding through the new investment fund company. As an example, PT Adhi Karya Tbk (IDX: ADHI) plans to offer two toll roads, PT Jasa Marga Tbk (IDX: JSMR) to sell nine toll roads, PT Waskita Karya Tbk (IDX: WSKT) and PT Waskita Toll Road more than nine projects, and other SOEs also prepared the other projects.
Finance director of Pertamina, Emma Sri Martini, has announced the energy producer prepared 14 upstream to downstream projects, including new and renewable energy. In detailed, Jambaran Tiung Biru project with investment costs of US$ 1.5 billion, Grass Root Refinery Tuban (GRR) Tuban with valued $16.7 billion, Refinery Development Master Plan (RDMP) Dumai with worth of $1.3 billion, RDMP Plaju of $1.3 billion, RDMP Cilacap of $3.6 billion, RDMP Balikpapan of $7.1 billion.
Then, polypropylene Balongan with total investemnt of $300 million, East Indonesia Fuel Tank projects of Rp205 billion ($14.24 million), East Indonesian LPG tank of Rp1.28 trillion, City Gas Network Development with cost of Rp33 trillion through PT Perusahaan Gas Negara Tbk (IDX: PGAS), coal gasification projects of $2.1 billion, Green Diesel Cilacap of $300 million, Green Refinery Plaju of $700 million.
In addition, Merah Putih Catalyst of Rp170 billion, PT Trans Pacific Indotama’ olefins project of $3.7 billion, fuel and LPG infrastructure of $2 billion, gas transmission and distribution with an investment of $4 billion, Electric vehicle battery ecosystem of $3.2 billion. It is targeted to operate in 2022-2029.
While, Adhi Karya, plans to divest Yogyakarta – Solo – Kulonprogo toll road (24 percent) and Yogyakarta – Bawen toll road (12.5 percent) in Trans Java toll road areas. The construction costs of this two projects is estimating around Rp7.8 trillion. And, finance director of Waskita, Taufik Hendra Kusuma, said the constructor prepared one toll road project with costs Rp31 trillion.
The unit, Waskita Toll Road, has 17 toll roads in Java and Sumatra, nine of the assets will offer to investors through INA. The toll roads included Cimanggis – Cibitung, Cibitung – Cilincing, Ciawi – Sukabumi, Depok – Antasari, Cinere – Serpong, Kanci – Pejagan, Pejagan – Pemalang, Pemalang – Batang, Batang – Semarang, Pasuruan – Probolinggo and Krian – Legundi – Bunder.
In March, finance minister, Sri Mulyani Indrawati, targeting the INA have a capability to attract new investment around Rp300 trillion after get capital injection from the government Rp75 trillion. Beside from the state budget, the government also pledged SOEs shares of Rp60 trillion in the sovereign wealth fund body.
Currently, she said, the sovereign wealth fund is exploring cooperation with potential investors who are showing interest in new projects. Beside SOEs, the ministries also prepared the projects. Transportation ministry plans to offer Garongkong Port in South Sulawesi, Ambon Port in Maluku, Palembang Port in South Sumatera, Singkawang Airport in West Kalimantan, Fakfak and Manokwari in Papua.
Then, airport projects in Mentawai in West Sumater, Aceh and East Nusa Tenggear. Other projects are sea in Ambon, Maluku and Taufik Kiemas airport in Lampung. The ministry also will develop the MRT, LRT in Bali, Medan, Bandung, Makassar, Surabaya. Bus terminals in all major cities, loop lines in Jakarta, and other projects, said the minister, Budi Karya Sumadi, last week.
In the first quarter of this year, the new agency is expected to raises new investment around $20 billion. The optimism come after government do their efforts by approached the potential investors, such as United Arab Emirates, Japan, Britain, Germany, and United States. Japan’ Softbank Corp., founder Masayoshi Son has expressed the commitment during a meeting with President Widodo in 2020.
He said, SoftBank wanted to support the building of a smart and green city loaded with artificial intelligence. CEO of the International Development Finance Corporation, Adam Boehler said, his company also invested $2 billion and UAE participation at the Fund around $6.8 billion. The SWF scheme will serve as government-owned private equity that can be used as investment, especially for infrastructure development.
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