JAKARTA (TheInsiderStories) - PT Waskita Karya (Persero) Tbk (WSKT), as a contractor appointed by the government to develop Light Rail Transit (LRT) in Palembang, South Sumatra, has secured financial support in the form syndicated loan from six banks and financial institutions amounting to Rp 4.59 trillion.
The syndicated loan members are PT Bank Negara Indonesia (Persero) Tbk (BNI), PT Bank Rakyat Indonesia (Persero) Tbk (BRI), The Bank of Tokyo-Mitsubishi UFJ, Ltd. ( “BTMU”), PT Sarana Multi Infrastruktur (Persero) ( “PTSMI”), Regional Development Bank Sumsel-Babel, and bank bjb.
In this financing, BNI acted as Original Mandated Lead Arranger and Book Runner, and BTMU as Mandated Lead Arranger. BRI, PT SMI and BJB acted as Arrangers and Bank Sumsel Babel as participants. In the agreement BNI provides a commitment of Rp 1.99 trillion; BTMU Rp 750 billion; then PT SMI, BRI, Bank BJB each provide Rp 500 billion; and BPD Sumsel-Babel Rp 350 billion.
The signing of Credit Agreement between WSKT and the Syndicate Members were held in Jakarta, Friday (Sept. 30 2016). Attending the signing ceremony were Director of Waskita Mohammad Choliq, Finance Director Waskita stumps Rajagukguk, Director of Corporate Business BNI Herry Sidharta, General Manager of the BTMU Branch Jakarta Yusuke Katsuta and Deputy General Manager of the BTMU Branch Jakarta Beam Affendi, Director of Institutional BRI Kuswiyoto, President Director of PT SMI Mrs. Emma Sri Martini, Muhammad Adil (Director of BPD Sumsel Babel), and Director of Commercial Bank BJB Suartini.
The construction of Palembang LRT project with a length of 23.4 kilometer began in October 2015 and is scheduled to be completed in June 2018, or ahead of the Asian Games. The total value of the project contract is amounting to Rp 12.59 trillion.
In this LRT project, WSKT gets the assignment as a contractor pursuant to Presidential Decree (Decree) No. 116 2015 on Accelerating the Implementation of Railway Light (LRT) in South Sumatra. Issuance of this regulation is based on considerations improving transportation services in support of development in South Sumatra, as well as supporting the implementation of the Asian Games 2018.
WSKT’s scope of work in this project is to build railway lines including construction of flyovers, stations and operational facilities. WSKT received help from local government in the form of ease of licensing, permit fee waivers, as well as tax and customs facilities in accordance with the provisions of the legislation.
Based on Presidential Decree 116/2015 LRT network consists of cross-ministry Sultan Mahmud Badaruddin II International Airport - Palembang Grand Mosque -Jakabaring Sport City. The 23 kilometer long trace us equipped with 13 (thirteen) stations and 9 (nine) sub stations, and spans 350 meters on the Musi River bridge 350 meters.
BNI Corporate Business Director Herry Sidharta said BNI support in this syndicated loan is a form of real support to the accelerated development of infrastructure projects. LRT development in the short term will provide benefits to the completeness of the infrastructure used for Se-Asian Games in 2018, and in the long term, the LRT will facilitate the mobilization of Palembang and surrounding communities with other modes of transportation more convenient and more affordable.
“Financing of the LRT project in Palembang showed that the acceleration of infrastructure development continues, and financial institutions provide full support to all efforts to realize the essential infrastructure,” he said.
Director of Waskita Mohammad Choliq revealed that physically Palembang LRT Project can be completed in February 2018 so there is still time about four months for testing and can be used in full in June 2018 to support the implementation of the Asian Games.
Director of Institutional BRI Kuswiyoto said that, this financing as a commitment of BRI in the success of programs to accelerate infrastructure development in Indonesia, particularly Sumatra.
“The signing of this credit facility is a form of synergy and a real effort to provide funding support to Waskita to continue to develop business Waskita in order to encourage infrastructure development in Indonesia. BRI himself has confirmed it will support the country’s development programs, particularly in the fields of energy, industry and infrastructure. Infrastructure is one of the leading sectors were the focus of BRI credit expansion in the Business Banking segment “, he added
“The construction of LRT in Palembang will bring enormous benefits for the mobilization, open access and economic growth Palembang. PT SMI very supportive Waskita in realizing this development, and are pleased to be in synergy with five other banks for better infrastructure in Palembang “said Emma Sri Martini, President Director of PT SMI.
General Manager of the BTMU Branch Jakarta Yusuke Katsuta said, “The Bank of Tokyo-Mitsubishi UFJ, Ltd. already operating and providing banking products and services in Indonesia for more than 50 years, and this time the financing is a form of our commitment to contribute to economic growth and infrastructure in Indonesia, and the growth of our consumer business. Palembang LRT Development Project is one part of a national strategic projects to boost economic growth in the region, and is also an element supporting the implementation of the Se-Asian Games, Asian Games, 2018. This is in line with one of our mission to serve the community, and to encourage mutual growth and sustainable for a better world. ”
Commercial Director bjb Suartini bank said “a syndicated loan portfolio bjb bank’s commitment in supporting the development of infrastructure as well as infrastructure development is expected to boost the economy in the region and nationally. Our credit distribution infrastructure is already growing at around 50%. Through the syndicated credit scheme, this risk can be minimized. ”
According Suartini, “Credit distribution infrastructure that made it was not only limited to infrastructure projects in West Java, but also in a number of other areas and to project LRT Palembang, we saw a good opportunity so that we participate in channeling funding to the project them,” he added.
According to Muhammad Adil (Director of BPD Sumsel Babel), the formation of this syndication is a BPD support Sumsel Babel government to finance strategic projects in regional development. As of the Month September 2016, credit expansion BPD Sumsel Babel grew to Rp12.5 trillion. We are still optimistic credit growth is still good, especially with the number of project areas in the period 2016 2018, or even ahead of the 2018 Asian Games and BPD Sumsel Babylon will optimize its business on various projects.
Project developments
Physical progress of the field that has been achieved up to 16 September 2016 amounted to 13.054% with the trace length reaches 23.4 km.
There are 5 zones and 13 service stations are bypassed by this means of transportation. Here are five zones of the LRT Palembang, South Sumatra:
zone I
International Airport Sultan Mahmud Badaruddin - Simpang service - Tanjung Api-Api Simpangan
zone II
Jalan Tanjung Api-Api - Kol road. H. Burlian - the demat Lebar Daun - Simpang Polda
Zone III
Simpang Force 45 - Force Road 45 - Simpang Palembang Icon - Jalan Kapten A. Rival - Simpang Charity - Jalan Sudirman
Zone IV
Ampera Bridge - the Governor H. A. Bastari and Zone D
Zone V
Jakabaring Sport City
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