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AIA mulls engagement in Indonesian infrastructure projects
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AIA Group regional chief executive Ng Keng Hooi (left), AIA Group executive director Mark Edward Tucker (center), and PT AIA Financial president director Ben Ng answer questions at a media briefing in Jakarta on Wednesday. (JP/Anton Hermansyah)
Global insurance company AIA is considering investment in Indonesian infrastructure to diversify its portfolio.
PT AIA Financial Indonesia president director Ben Ng said as long as an infrastructure project offered returns and risks that matched the company's long term horizon, it would tap into the project. Currently, most of AIA's portfolio in Indonesia is government bonds, but in the rest of Asia it mostly invests in infrastructure.
"We are a big infrastructure investor in the region, so clearly in Indonesia we would have the same interest," he said during a press meeting at his office on Wednesday.
Indonesia needs around US$400 billion to finance infrastructure projects until 2020. As the government can only finance around 30 percent of that sum, most of the projects are set to be sold to private investors.
At the same event, AIA Group executive director Mark Edward Tucker said the group usually participated in infrastructure investment in the operating country. The third-largest insurer has around $40 billion worth of investment in infrastructure projects across Asia.
"In all countries that we are in we have some form of infrastructure investment, which is a good demonstration of commitment," he said. (evi)
