Samarinda Toll Road will Connecting to Balikpapan, in East Kalimantan - Photo: Special

JAKARTA (TheInsiderStories) – PT Jasamarga Balikpapan Samarinda (JBS), received a syndicated financing facility of Rp6.98 trillion (US$481.38 million) from local banks to construct the Balikpapan-Samarinda toll road in East Kalimantan. This will become the first toll road in Kalimantan.

A unit of PT Jasa Marga Tbk (IDX: JSMR) get the syndicated loans from 14 financial institutions, consisting of eight conventional banks, five Islamic banks and one infrastructure financing institution with PT Bank Mandiri Tbk (IDX: BMRI) and PT Bank Syariah Mandiri acting as joint mandated lead arrangers and book runners.

The other arrangers namely PT Bank Mega Tbk (IDX: MEGA), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), Bank ICBC, PT Sarana Multi Infrastruktur, Indonesia Eximbank, also regional banks such as PT Bank Pembangunan Daerah Jatim Tbk (IDX: BJTM), Bank Papua, , Bank Kalsel.

Meanwhile, the five banks that channel syndicated loans in sharia are Bank Syariah Mandiri, PT Bank Muamalat Tbk, PT Bank Negara Indonesia Syariah, PT Bank Rakyat Indonesia Syariah, and PT Bank Jabar Banten Syariah.

Jasa Marga Finance Director Donny Arsal explained, the operator ensured the availability of funding for the construction of the Balikpapan-Samarinda Toll Road project.

“We hope that the project, which is one of the 20 new toll road sections built by Jasa Marga, will be operational next year,” he said at a press conference after signing the syndicated financing facility today (12/29).

The Balikpapan-Samarinda Toll Road will consist of five sections with land acquisition progress of 98.40 percent and construction progress of 77.25 percent. Later, the toll road, which is one of the National Strategic Projects, will connect Balikpapan City, one of the largest economic centers of East Kalimantan, with the capital city of East Kalimantan, namely Samarinda City.

“As the first toll road in Kalimantan, the Balikpapan-Samarinda toll road will be able to cut a total journey of 34 kilometers so travel time which usually takes 3-4 hours to be only 1 hour,” said STH Saragi, JBS’ director.

Earlier, the government set 37 Priority Projects with a total value of Rp 2,344 trillion (US$161.66 billion). They are monitored and supported directly by the Priority Infrastructure Provision Acceleration Committee.

For Priority Projects, 17 have entered construction phase, nine are in the transaction process, and 11 are still in the preparation stage. The Balikpapan-Samarinda Toll Road Project, Jakarta North-South Corridor MRT, Palapa Ring Broadband, Batang Power Plant and Tangguh LNG Train 3 are some examples of Priority Projects that have reached the construction stage.

As for the 35,000 MW power plant program, he reported that 3 per cent (948 MW) has been in operation, 42 per cent (15,126 MW) has entered a construction phase, 38 per cent (13,673 MW) has signed a Power Purchase Agreement, 11 per cent (3,763 MW) is in procurement and 6 per cent (2,328 MW) in the planning phase.

The government has launched several reforms to encourage the acceleration of national strategic projects, ranging from fiscal reform to institutional reform and policy reform.

US$1: Rp14,500

Written by Staff Editor, Email: theinsiderstories@gmail.com