IFC CEO Philippe Le Houérou (R) and Johannes Suriadjaja - President Director PT Surya Semesta Internusa Tbk (L) at the Loan Agreement Signing in Bali (02/08) - Photo by IFC

JAKARTA (TheInsiderStories) – International Finance Corporation (IFC), a member of the World Bank Group, and PT Surya Semesta Internusa Tbk (IDX: SSIA) have signed a US$100 million loan package for a new 2,000-hectare green state of the art industrial estate in Subang, West Java.

The project set to provide over 34,000 jobs. Located along the Trans Java toll road network, the Subang industrial estate will provide modern infrastructure for both international and domestic manufacturing firms. It is strategically positioned for access to the newly opened Kertajati International Airport and the Patimban Deep Sea Port currently being developed in Subang.

Surya Semesta’s President Director, Johannes Suriadjaja believes that this first investment by IFC in the company will create markets that open up greater opportunities for the future of its new Subang City of Industry project.

In formally signing the deal at a ceremony in Bali yesterday, IFC CEO Philippe Le Houérou said the lender also planned to boost investments in the country’s tourism sector, in support of the Government of Indonesia’s efforts to accelerate tourism development in key destinations across the country.

“The tourism sector offers tremendous opportunity for the future growth of Indonesia. For the country to unlock its true potential, tourism development must move increasingly beyond Bali to other destinations. This is a key objective of the Government of Indonesia’s national tourism plan,” he said.

Subang City of Industry is envisioned as a model for tomorrow’s industrial estate by becoming the first smart and sustainable industrial estate for customers and society in Indonesia.

It will be the first industrial estate to promote IFC’s green buildings standards, with both SSIA and its manufacturing tenants aiming to achieve at least 20 percent savings in energy, water, and materials compared to other similar developments.

In the first half (1H) of 2018 Surya Semesta posted a consolidated revenue  of  Rp1.52  trillion (US$106.30 million), decreased by about 2.3 percent from Rp1,55 trillion in 1H17.  This decrease was mainly due to revenue in property were down by about 30.5 percent.

The company 1H18 EBITDA stood at Rp120.2 billion, 31.1 percent lower from 1H17  EBITDA at Rp174.3 billion. SSIA’s  consolidated net income in 1H18  at Rp56.0  billion, 104.5 percent lower  compared to Rp1,23 trillion booked in 1H17. The Company cash position per 1H18 stood at Rp1.76 trillion, a 17.2 percent lower compared to 1Q18 cash position at about  Rp2.13 trillion.

On May 2017, Surya Semesta has sold its part in the Cikopo-Palimanan (Cipali) toll road to PT Astratel Nusantara, a subsidiary of PT Astra International Tbk (IDX: ASII).

The Cipali toll road has a length of 116 kilometers (km) which is one of the longest segments in the Trans-Java toll road network. The toll road  connects the Jakarta and surrounding areas with western and central Java as well as being the main line of national logistic chain. The company received Rp2.56 trillion from the share sale.

Suriadjaja sees this divestment in positive way because the company obtains additional capital to open new investment opportunities, especially for the expansion of industrial areas in Subang, which will be completed in 2019.

The company main projects obtained in 1H18 were Atria Ballroom Extension Tangerang, Sika Factory Cikarang in West Java, Budi Medika Lampung Hospital, Power Blok Indah Kiat  Karawang in West Java, The Park Mall Sawangan in Jakarta, Arntz‐ Geise Education Center in Bandung, West Java.

Surya Semesta formerly known as PT Multi Investments Limited, was established on June 15, 1971. The company then transformed into PT Surya  Semesta  Internusa in  1995.

The main  businesses  are industrial estate &  real estate development, construction and hospitality. SSIA’s diversified investment portfolio includes  Suryacipta City of Industry, SLP Karawang, Graha Surya Internusa  (to be redeveloped into SSI tower), Gran Melia Jakarta Hotel,  Melia Bali Hotel, Banyan Tree Ungasan Resort Bali, and BATIQA Hotels.

SSIA recorded its shares at Indonesia Stock Exchange and became a listed company on March 27, 1997.

Email: linda.silaen@theinsiderstories.com