The Indonesian sovereign wealth fund (INA) on Tuesday announced the completion of the transaction relating to investments in two sections of the Trans Java toll road belonging to the Indonesian listed infrastructure company Waskita Karya.

INA’s investments in toll motorway projects will be made through its subsidiaries PT Rafflesia Investasi Indonesia (RII) and PT Abhinaya Investasi Indonesia (AII), according to a press release.

The partnership will strengthen Waskita Karya’s cash flow to accelerate the development of other toll road projects in Indonesia, CEO Destiawan Soewardjono said.

INA CEO Ridha Wirakusumah said that “the agreement is a big step forward in our efforts to disburse investments for the development of key infrastructure, in particular toll roads. We hope that this transaction will be followed by other sectors and can encourage economic growth and create a real impact in optimizing the economic potential of Java.

The transaction was supported by partner banks and financial institutions, including public lenders PT Bank Negara Indonesia and PT Bank Mandiri, public infrastructure company PT Sarana Multi Infrastruktur and regional development lender PT Bank Pembangunan Daerah Jawa Tengah.

INA first announced the signing of two deals to invest in toll roads on the islands of Sumatra and Java worth more than 39 trillion rupees ($2.72 billion) in April of this year.

INA had signed memorandums of understanding with the state-owned construction company Hutama Karya to invest in three sections of the Trans Sumatra toll road. INA had also signed confirmation of the start of a transaction with Waskita Toll Road, a unit of Waskita Karya, for two sections of the Trans Java Toll Road.

These agreements were the first concrete steps of the INA since the creation last year of a fund for toll roads of up to $ 3.75 billion, with the Caisse de depot et placement du Quebec (CDPQ), APG Asset Management (APG) and a unit of the Abu Dhabi Investment Authority (ADIA). ) as co-investors.