GIC invests $265m in Indonesian cinema operator

The deal comes two weeks after the Singaporean sovereign wealth fund appointed current deputy group president and group CIO Chow Kiat Lim as its new CEO.

GIC Private Limited, Singapore’s $100 billion sovereign wealth fund, has invested 3.5 trillion rupiah ($265 million; €248 million) in a Jakarta-based cinema operator PT Nusantara Sejahtera Raya (NSR) as it continues to bet on Indonesia’s long-term growth potential fuelled by rising consumption and urbanisation.

In a joint statement, GIC and NSR said the investment will be used expand the company’s footprint in the domestic market.

NSR, the leading cinema operator in Indonesia, operates 864 screens in 157 cinemas across 36 cities nationwide. The company’s brands include Cinema 21, Cinema XXI, and The Premiere.

NSR’s operational expertise and portfolio of high quality cinemas positions it well to benefit from the rapidly expanding consumer class and economic development in Indonesia,” Amit Kunal, head of direct investments group for South-East Asia, private equity & infrastructure, commented. “We look forward to working with the team at NSR to accelerate its presence nationally and to achieve the vision of providing best-in-class cinematic experience to the country.”

GIC has been an active investor in Indonesia's retail sector. The state fund committed around 5.2 trillion rupiah in February this year in PT Trans Retail, which operates hypermarkets, supermarkets and cash- and-carry stores under the Carrefour and TranSmart brands.

In April GIC made its first investment in Indonesia’s logistics sector by teaming up with the publicly listed property developer PT Mega Manunggal Property to develop warehouses of up to 5.4 million square feet in Indonesia over the next three years.

Only two weeks ago, the sovereign wealth fund made changes to its senior leadership team, naming current deputy group president and group chief investment officer Chow Kiat Lim as its new chief executive officer.