Singapore’s GIC and Northstar Pacific Partners Invest in PT Triputra Agro Persada
The Government Investment Corporation of Singapore and Northstar Pacific Partners have purchased a US$ 200 million minority stake in PT Triputra Agro Persada, an Indonesian palm oil producer. Northstar Pacific Partners is an Indonesian private equity firm that received investment by TPG Capital. Indonesia is the largest producer of palm oil, surpassing its neighbor Malaysia.
The deal consists of equity shares and convertible bonds; furthermore, giving both the GIC and Northstar rights to invest an additional US$ 50 million in PT Triputra Agro Persada.
Indonesia is ripe with raw materials, has a growing middle class, and in need of infrastructure. Historically, private equity firms and other foreign investors have shunned investing there due to high risk. This trend is slowly changing.