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Meat giant JBS has partnered with Danantara Investment Management (DIM), an arm of Indonesia’s sovereign wealth fund, to establish a new joint venture that will manage JBS’ operations in Australia and New Zealand.

The long-term partnership includes a $2.5 billion investment from DIM for a 25% stake in the new JV. DIM said the JV is also expected to raise up to $2.5 billion in additional investment financing, bringing the total capital available to $5 billion.

Aiming to support the development of Indonesia’s protein ecosystem, the financing will be used to fund acquisitions and greenfield investments across Indonesia, Southeast Asia, Australia and New Zealand.

Gilberto Tomazoni, global CEO of JBS, said that the partnership marks a key step in its long-term growth strategy in Southeast Asia.

He commented: “As a key pillar of the JBS global platform, our businesses in Australia and New Zealand boast operational excellence, world-class standards and significant growth potential”.

“Together with Danantara, we are well-positioned to expand our presence in Indonesia and Southeast Asia, strengthening the regional protein supply chain, expanding market access and accelerating the development of the Indonesian protein sector."

Pandy Patria Sjahrir, chief investment officer of Danantara Indonesia, said: “This strategic partnership reflects Danantara Indonesia's commitment to building collaborations with global partners that align with our investment mandate”.

“In addition to gaining access to an established business ecosystem in a developed international market, this partnership is expected to leverage the experience and distribution channels of leading global protein companies, which can contribute to the long-term development of Indonesia's protein sector.”

The transaction is subject to closing conditions, including relevant regulatory approvals.