Sovereign funds see growing opportunities in EM infra

Although allocations to emerging markets can carry added risk, asset owners such as GIC and Indonesia Investment Authority (INA) are adding to their already substantial investments in infrastructure funding. Global sovereign wealth funds have been a significant force in the funding of major infrastructure projects across the Asia region. GIC forecasts that global infrastructure investment needs are expected to total around USD 70 trillion between now and 2040. Its latest investment in the sector is backing the expansion of Indonesia’s toll road network. The USD 1 billion investment, made in association with Metro Pacific Tollways Corporation, is for a 35% stake in Jasamarga Transjawa Tol (JTT), a subsidiary of the Indonesian state-owned toll road operator, PT Jasa Marga. JTT is a network of 13 toll roads in the provinces of West, Central, and East Java.

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