14 local banks to fund turnpike construction

The Jakarta Post, Jakarta

A consortium of 14 local banks and financial investors will provide Rp 5.74 trillion (US$610 million) to finance the construction of a 21-kilometer turnpike planned by the Jakarta administration to ease traffic congestion in the capital.

According to a report in Antara newswire on Wednesday, the head of turnpike regulator BPJT, Hisnu Pawenang, said the turnpike would stretch from Bekasi in West Java to Cawang and Kampung Melayu in East Jakarta.

Some Rp 1.72 trillion of the funds will be injected by construction company Kresna Kusuma Dyandra Marga, with the remaining Rp 4.02 trillion provided by 14 local banks and AAA securities firm.

The banks include nationwide lenders Bank Negara Indonesia (BNI), Bank Rakyat Indonesia and Bank Bukopin, and regional lenders Bank Jabar, Bank Jatim, Bank Jateng, BPD Kaltim, Bank DKI, BPD Sumsel, BPD Papua, Bank Nagari, BPDB Sumut, BPD Aceh and BPD Kalsel.

BNI has been appointed as lead arranger for the syndication, due to its vast portfolio in turnpike projects, including the Cikampek-Palimanan toll road at Rp 490 billion; the Mojokerto-Kerosono toll road (Rp 556 billion); the Surabaya-Mojokerto toll road (Rp 764 billion); and the Kanci-Pejagan turnpike (Rp 657 billion).

BNI president director Sigit Pramono said the syndicated loan would have a maturity period of 12 years.

The project is slated for completion in 2011.