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Hiswara Bunjamin & Tandjung and Herbert Smith Freehills advise Indonesia Investment Authority on US$1.3 billion toll road deal

Leading international law firm Herbert Smith Freehills and associate firm Hiswara Bunjamin & Tandjung (HBT) have advised the Indonesia Investment Authority (INA) on its investment in the Bakauheni-Terbanggi Besar and Medan-Binjai toll roads in North and South Sumatra with a total enterprise value of approximately US$1.3 billion. 

INA is Indonesia’s sovereign wealth fund, mandated to increase investment to support the country’s sustainable development and build wealth for future generations. 

"INA's investment in these toll roads is critical to the Indonesian Government’s asset recycling strategy," said Matthew Goerke, HBT senior international counsel and Herbert Smith Freehills partner. "Infrastructure such as these roads enables trade, powers businesses, connects workers to their jobs, and creates opportunities for Indonesian communities."

The transaction was implemented in collaboration with Indonesian state-owned infrastructure developer PT Hutama Karya (Persero). The transaction also involved a large refinancing exercise, with new financing from Bank Rakyat Indonesia into special purpose vehicles to support the project. 

The deal is the second completed M&A toll road transaction for INA, alongside its investment cooperation with Waskita Karya for two sections of the Trans Java Toll Road. It is also the tenth Indonesian toll road transaction on which Herbert Smith Freehills and Hiswara Bunjamin & Tandjung have advised in the last three years. The two firms are also advising on other infrastructure projects including the DP World and INA alliance on their investment in the Belawan New International Container Terminal.

The team advising INA was led by Matthew Goerke and HBT partner Dhani Maulana M Pattinggi, with finance partner Tjahjadi Bunjamin leading the refinancing team. The Jakarta team also included senior associates Aditya Rachman and Giovanna Nicky R, and associates Adhitya Nugraha, Fauzi Rohmat, Gregorius Wibisono, Neduro Nainggolan and Deavina Christy. Assistance in Singapore was provided by Adrian Wong, director at Prolegis LLC and head of projects for the Herbert Smith Freehills Prolegis Formal Law Alliance, with senior associate Ken Ooi and associate Audrey Siew. 


Dora Cheok, Herbert Smith Freehills, Singapore (T +65 6868 8011  M +65 9232 521  E

Richard Pedler, Hiswara Bunjamin & Tandjung, Jakarta (M +62 812 9391 3991  E

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