Singapore sovereign fund GIC invests $370 million in Indonesian theatre chain

The latest investment reflects GIC's growing confidence in Indonesia's long- term growth potential.

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Singapore's Minister Mentor Lee Kuan Yew, chairman of the Government of Singapore Investment Corp. (GIC), speaks at GIC's 25th anniversary dinner at a hotel in Singapore in this July 11, 2006 file photo. Reuters

Singapore's sovereign wealth fund GIC said it will invest 3.5 trillion rupiah (S$370 million) in Indonesia in to expand the theatre chain across the country.

The latest investment by the Government of Singapore Investment Corporation is part of its partnership with local firm Nusantara Sejahtera Raya, which operates many theatre chains such as Cinema 21, Cinema XXI and The Premiere. The company operates 864 screens in 157 cinemas across 36 cities in the country.

"The investment... reflects our confidence in Indonesia's long- term growth potential," GIC's head of Direct Investments Group for South East Asia, Amit Kunal, said.

"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. 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," he added.

The strategic partnership between the companies will allow NSR to expand nationally to offer more cinemas in Indonesia, which is expected to grow its middle class, it said in a statement.

"We are excited to partner with GIC, which has a strong experience of successfully supporting businesses in Indonesia. GIC's investment is a recognition of the work we have done to build our company and a validation of the tremendous opportunities we see ahead," NSR founder Benny Suherman said.