Indonesia road project financing signed

A financing deal has been signed for a portion of a major highway project in Indonesia. The US$91 million loan package has been signed between Indonesian infrastructure financing company, Sarana Multi Infrastrucktur (SMI), and contractor, Hutama Karya. This will help pay for work on the 22km Palembang-Indrayala stretch of the 2,700km Trans Sumatra 2,700km highway project. The funds will be made available in three tranches. Funding from state sources will provide the remaining funds required for the Palemban
November 23, 2015 Read time: 1 min
A financing deal has been signed for a portion of a major highway project in Indonesia. The US$91 million loan package has been signed between Indonesian infrastructure financing company, Sarana Multi Infrastrucktur (SMI), and contractor, 5206 Hutama Karya. This will help pay for work on the 22km Palembang-Indrayala stretch of the 2,700km Trans Sumatra 2,700km highway project. The funds will be made available in three tranches. Funding from state sources will provide the remaining funds required for the Palembang-Indralaya stretch of highway.

Meanwhile, Hutama Karya has included four new segments for the Trans Sumatra project which comprise of Palembang-Tanjung Api-Api, Terbanggi-Besar-Kayu Agung and Tebing-Tinggi-Kisaran. Plans are also being set to provide the funding for the Terbanggi Besar-Bakauheni stretch prior to the start of 2016.
Finance & Funding

For more information on companies in this article

Related Content

  • Indonesia’s new toll road projects through public private partnerships
    December 16, 2013
    Public private partnerships (PPP) are being set up by the Indonesian Government to construct three toll road projects valued at US$783.3 million (IDR 9.40tn). Tender for the projects will be launched in 2014, with construction due to begin the following year. A 39km Manado-Bitung road in North Sulawesi; a 37.6km road in Malang-Pandaan in East Java; and 15.8km Medan-Binjai road in North Sumatra comprise the three toll road projects. The three projects are due for completion by the end of 2017. Also in Indon
    Read More
  • Indonesia highway projects underway
    July 27, 2020
    Work on key Indonesian tolled highway projects is now underway.
    Read More
  • Indonesian toll roads
    August 13, 2012
    ijaya Karya (Wika), the Indonesian governmentowned construction service provider, will build toll roads linking Kedung Badak to Kedung Halang and Pandaan to Gempol in Bogor through two contracts worth US$36.35 million and $24 million, respectively. Awarded by highways operator Jasa Marga (JSMR), the contracts require the roads completion in 18 months. The operator of the Tangerang- Merak Toll Road, Marga Mandala Sakti (Marga Mandala), will be allocating U$17 million to increase the toll road’s capacity. It
    Read More
  • Indonesia’s Trans Marga Jateng secures key new toll road loan
    April 8, 2014
    A US$415.45 million (IDR 4.7 trillion) loan has been agreed for a new 75.67km toll road as part of the Trans Java toll road project in Indonesia. Trans Marga Jateng, the 60:40 joint venture of Indonesian state-owned toll-road operator Jasa Marga and Central Java's state-owned infrastructure firm Sarana Pembangunan Jawa Tengah, has secured the 15-year syndicated loan from a group of lenders headed by state-owned bank Bank Mandiri. The new toll road will run from Solo to Semarang through Salatiga and Boyola
    Read More

Highlighted Content