Traveloka Receives 4,5 Trillion Rupiah Loan Facility, One of them is from the Indonesia Investment Authority

Traveloka announced the receipt of a funding facility in the form of a loan of $300 million (more than 4,5 trillion Rupiah) from various investors, including the Indonesia Investment Authority (INA), BlackRock (through privately managed credit funds), Allianz Global Investors, Orion Capital Asia, and other leading global financial institutions.

Traveloka will use the loan funds to support the post-pandemic travel business which is predicted to bounce back. This funding round is claimed to have attracted significant interest from a number of high-quality long-term capital providers, resulting in excess demand.

Each investor representative also gave their official statement which was distributed today (29/9). One of them is the CEO of INA Ridha Wirakusumah, he said that in order to support the travel sector with unparalleled ease and access, travel agents online (OTA) has changed the industry landscape during the pandemic. For example, the role of OTAs in Indonesia's gross tourism bookings is currently increasing from 24% to 33% in 2021, with expectations of reaching 36% by 2024.

“We believe that Traveloka is champion Indonesia's national and regional levels, and is a key catalyst towards digitizing travel and accommodation in Indonesia and the region. This co-investment can enable Traveloka to deepen its leadership and create value for the entire travel ecosystem,” said Ridha.

Co-founder and CEO of Traveloka, Ferry Unardi, added, "We are very pleased with the inclusion of investors in this group of investors who share the same commitment and believe in Traveloka's vision to fulfill users' travel and lifestyle aspirations.

“Our business continues to experience improvement and the tourism industry has bounced back from the pandemic. This funding provides an opportunity for us to strengthen our balance sheet and allows us to continue to focus on our core business, while building our future businesses,” said Ferry.

Last July, Traveloka is also reported to have received an investment commitment from PTT Oil and Retail Business (OR) through its subsidiary, PTTOR International Holdings Singapore. This investment is a big step for OR to expand into the travel sector and strive to be a one-stop solution for all lifestyles.

About INA

INA is an investment management institution (sovereign wealth funds) which was established by the government in 2021. This institution is mandated to increase investment to support Indonesia's sustainable development. INA has received capital from the government of Rp75 trillion, consisting of three injections.

The main sectors that INA is targeting are infrastructure, supply chain and logistics, digital infrastructure, green investment, healthtech, fintech, consumer, and tourism.

Over the past year, INA has successfully completed 11 investment agreements, 4 Head of Agreements (HoA), and issued 16 Letters of Intent (LOI)/Non-Binding Offers (NBO). Overall, INA succeeded in capturing investment commitments from various global investors worth more than Rp. 300 trillion for the transportation, logistics, maritime and digital infrastructure sectors.

Based on its financial reports, INA managed to record a net profit of Rp231,2 billion, an increase in total assets and equity to Rp79,2 trillion and Rp79,1 trillion, respectively.

In the field of digital infrastructure, INA has become a anchor investors during the IPO of Mitratel, a subsidiary of Telkom, in November 2021. The entry of Traveloka also enlivened INA's portfolio in the field of tourism.

INA itself is led by veterans in the financial industry, both local and multinational. Ridha was previously a banker, serving as President Director of Bank Permata, Head of Indonesia KKR & Co., and President Director of Bank Maybank Indonesia.