Indonesia’s INA, Japan’s Mitsui eye CVC’s RKE stake in $300M deal

CVC Capital Partners looks to sell 25% stake in Indonesian toll road operator amid rising investor interest.

A man walks past the logo of Japanese trading company Mitsui & Co. in Tokyo, Japan, on February 8, 2017. Photo by Toru Hanai/Reuters

By Alana Salsabila and Laila Azzahra

Indonesia’s sovereign wealth fund, the Indonesia Investment Authority (INA), and Japan’s Mitsui & Co. are among the potential buyers of CVC Capital Partners’ 25% stake in Indonesian toll road operator RKE International, according to sources familiar with the matter. The stake is valued at approximately $250 million to $300 million, potentially placing the company’s total valuation at up to $1 billion.

CVC Capital, a Luxembourg-based private equity firm, initiated the sale process for its share in RKE International, also known as Road King Expressway International Holdings, in late 2023. The move has attracted interest from financial investors and infrastructure companies seeking to expand their holdings in Southeast Asia’s booming toll road sector.

The remaining stake in RKE International is currently held by Hong Kong-listed Road King Infrastructure, a major player in property development and transportation infrastructure. Both Road King and RKE International have yet to comment on the ongoing sale discussions.

Rising interest in Southeast Asia’s infrastructure sector

The sale comes at a time when global investors are increasingly looking at infrastructure assets in Southeast Asia, drawn by the region’s strong economic growth and the long-term stability of the toll road sector. Despite global economic uncertainties, infrastructure investments in Indonesia remain attractive due to the country’s expanding road network and rising demand for transportation services.

RKE International operates a portfolio of four toll roads in Indonesia, spanning a total of 335 kilometers across Central Java, East Java, and North Sumatra, according to Road King’s official reports. These expressways play a crucial role in Indonesia’s transportation infrastructure, contributing to regional connectivity and economic development.

CVC Capital initially invested 2 billion Hong Kong dollars (approximately $256.7 million) into RKE International in 2018, when the company held a broader portfolio, including expressways in China. However, in November 2023, RKE International divested its Chinese toll road assets to Hong Kong-based Cornerstone Holdings Ltd. for 4.4 billion yuan ($606.8 million), refocusing its operations on the Indonesian market.

Strategic implications for INA and Mitsui

If INA and Mitsui proceed with the acquisition, it would mark a significant investment in Indonesia’s toll road sector, aligning with both entities’ strategic interests. INA, established to attract foreign investments into Indonesia’s infrastructure and key industries, has been actively pursuing transportation-related assets. Meanwhile, Mitsui, a major Japanese trading conglomerate, has a long history of investing in infrastructure projects across Asia.

The potential deal could strengthen INA’s role in managing key national infrastructure assets and provide Mitsui with a strategic foothold in Indonesia’s growing transportation sector. The toll road business offers a stable revenue stream, making it an attractive investment for both institutional investors and private equity firms.

Despite strong interest in RKE International’s stake, neither CVC Capital, INA, Mitsui, nor Road King Infrastructure have disclosed further details regarding the timeline or progress of the sale. The discussions remain confidential, with no official confirmation from the parties involved.

The future of Indonesia’s toll road investments

Indonesia’s infrastructure development has been a top priority for the government, with toll roads playing a central role in national connectivity. President Joko Widodo’s administration has aggressively expanded the country’s highway network, opening new opportunities for investors in the sector.

The acquisition of RKE International’s stake by INA or Mitsui would align with Indonesia’s long-term infrastructure goals while signaling continued foreign confidence in the country’s investment climate. As the sale process unfolds, global investors will closely monitor the outcome, as it could shape future deals in Southeast Asia’s toll road industry.