Pelindo II gets loan for port project
State-owned banks Bank Mandiri and Bank Negara Indonesia (BNI) have agreed to provide loans worth US$105 million to Pelindo II to help it finance the development of the Kalibaru Port, reported Jakarta Post.
Pelindo II president director RJ Lino said that the credit would significantly accelerate the development of the first phase of the Kalibaru Port, which will become one of the largest container ports in the country with an area of 195 hectares.
The financing from Bank Mandiri and BNI is the first credit Pelindo II has received from the national banks. Prior to this, Pelindo II relied on its own funds to support operations.
Bank Mandiri corporate banking director Francisca Nelwan Mok said that the lending commitment for Pelindo II was an example of how state-owned enterprises could work together to develop much needed infrastructure in Indonesia.
BNI business banking director Krishna Suprapto said that he hoped the construction of the new port would reduce logistical costs in Indonesia.
"High logistical costs makes the domestic industry lose its edge against foreign competitors," Krishna said.
Meanwhile, Rima Noviyanti, the corporate secretary of Pelindo II, also known as Indonesia Port Corporation (IPC), said that ground-breaking at the Kalibaru Port, also called New Priok in North Jakarta, would be delayed until next month. The ground-breaking ceremony for the port was originally scheduled for September 17.
Based on the master plan, during the first phase the company will develop three container terminals with a total capacity of 4.5 million TEUs and two fuel berths with a total investment of up to $2.5 billion.
The first container terminal with a capacity of 1.5 million TEUs is set to commence operation in the middle of 2014, with each of the additional four terminals being completed in the years following up until 2017.
