SINGAPORE (AFP) – Singapore’s sovereign wealth fund GIC and Rajawali Group will jointly invest $500 million in Indonesian real estate with a focus on projects in fast-growing Jakarta, both firms said Tuesday.
The joint venture would involve the development of office, retail, residential as well as mixed-used projects in Indonesia, the Singapore firm said in a statement on its website.
“GIC is confident in Indonesia’s long-term growth potential and believe we can create value through the acquisition of assets in prime locations and active asset management,” said Loh Wai Keong, co-head of GIC Real Estate in Asia.
Indonesia, Southeast Asia’s biggest economy, has transformed itself into a major investment destination in the past decade, enjoying more than a decade of relative stability since the fall of former dictator Suharto in 1998.
The country’s new president Joko Widodo has pledged to cut red tape to attract more foreign investors and strengthen the economy.
GIC, one of Singapore’s two state-linked investment funds, manages the affluent city-state’s foreign exchange reserves of well above $100 billion.