Indonesia wealth fund, DP World ink pact for port development

Jakarta

INDONESIA'S newly established wealth fund signed an agreement with Dubai port operator DP World to develop seaports in South-east Asia's largest economy.

Under the agreement, Indonesia Investment Authority and DP World, one of the biggest global port operators, will form a consortium to explore long-term investment opportunities across the country, according to a joint statement on Sunday (Oct 31).

A partnership with state port operator PT Pelabuhan Indonesia is among options that both parties say will bring economic value of up to US$7.5 billion.

Indonesia, an archipelago with over 17,000 islands, considers marine logistics and seaports as a key support for the domestic economy, according to Ridha Wirakusumah, chief executive at the fund known as INA.

The fund lets investors place money in sub-funds spanning infrastructure, healthcare, tourism, technology and the development of a new national capital city planned on the island of Kalimantan.

DP World recently announced a string of deals to become a more diversified and integrated logistics company. Its operations span from gateways in London and Antwerp to hubs in Africa, Russia, India and the Americas. The company, along with partner Caisse de depot et placement du Quebec, signed a port and logistics park agreement with Indonesia's Maspion Group in March. BLOOMBERG