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

  • Sections nearly ready for Indonesia’s trans-Sumatra route
    March 19, 2019
    Key sections of Indonesia’s important trans-Sumatra highway project are nearly ready for traffic. A 350km stretch that will connect with the city of Palembang should be open shortly. Meanwhile construction of the 141km Bakauheni to Terbanggi Bedar stretch is now starting, with this work being carried out by contractor Hutama Karya. The plans for the 2,765km trans-Sumatra toll road project call for the route to be complete by 2024. This will connect Aceh at the northern end of Sumatra with Lampung on the so
    Read More
  • Indonesia’s Trans-Sumatra highway inches ahead
    March 11, 2015
    Indonesia will form a consortium of state enterprises to build all the 2,700km of the Trans-Sumatra toll highway, from Lampung to Aceh on the island of Sumatra. The finance department is also setting up special infrastructure banks to provide flexible loans for the state departments to fund the project, Indonesian media reported. Indonesia recently changed the law that had the state infrastructure company PT Hutama Karya as the only organisation allowed to build major projects. Other state enterprises can n
    Read More
  • Waskita Karya seeks loan for Pejagan-Pemalang toll road on Java
    January 12, 2015
    Indonesian state-owned construction firm Waskita Karya will seek a bank loan of US$338 million for its work on the Pejagan-Pemalang toll project in central Java island. The project is being managed by Pejagan Pemalang Toll Road, a subsidiary of Waskita Karya. Waskita company secretary Antonius Yulianto Nugroho said the firm has enough cash resources to cover a quarter of its financial commitment on the project and is targeting bank loans to cover the other 75%. Waskita Karya plans to carry out a bond
    Read More
  • Indonesia working on financing of Tebing Tinggi-Kisaran toll road
    August 16, 2016
    Indonesia is looking to finalise the financing of the Tebing Tinggi-Kisaran toll road that is likely to cost around US$661 million. The 60km road is part of the trans-Sumatra highway project, which is targeted for completion in 2019, according to a report in the Jakarta Post newspaper. The route – one of 30 priority infrastructure projects - will connect Kuala Namu International Airport and Kuala Tanjung Port with the nearby Sei Mangkei industrial complex. “Of the eight priority routes on the trans-Sumat
    Read More

Highlighted Content