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Overview

ICBC Indonesia contributes IDR 100 billion to IDR 3.22 trillion syndicated loan for Pemalang-Batang Toll Road Construction Project

Commitments (Constant USD, 2023)$7,952,917
Commitment Year•2017Country of Activity•IndonesiaDirect Recipient Country of Incorporation•IndonesiaOverseas Jurisdiction•IndonesiaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 24, 2017
Start (actual)
Jun 17, 2016
End (actual)
Nov 9, 2018
First repayment (originally scheduled)
Jan 1, 2019
Last repayment (originally scheduled)
Dec 29, 2030

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The purpose of the project was to construct a 39.2 km toll road linking the Pemalang area with Batang in Central Java. More detailed locatioonal information can be found at https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=-6.8923%2C109.3847%3B-6.9073%2C109.7287

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • PT Bank ICBC Indonesia

Cofinancing agencies

Private Sector

  • Bank Artha Graha
  • PT Bank Pan Indonesia, Tbk (PaninBank) (Bank Panin)

State-owned Banks

  • PT Bank Negara Indonesia (Persero)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Pemalang Batang Toll Road (PBTR)

Implementing agencies

Joint Venture/Special Purpose Vehicles

  • Pemalang Batang Toll Road (PBTR)

Loan description

ICBC contributions to IDR 3.22 trillion 2017 syndicated loan for the Pejagan Pemalang Toll Road Project

Grace period•2 yearsGrant element•0%Interest rate (t₀)•10.5%Interest type•Fixed Interest RateMaturity•14 years

Narrative

Full Description

Project narrative

On May 24, 2017, PT Pemalang Batang Toll Road (PBTR) — a special purpose vehicle and joint venture of PT Waskita Toll Road (WTR) [60% ownership stake] and PT Sumber Mitra Jaya [40% ownership stake] — signed an IDR 3,220,000,000,000 syndicated loan agreement with 17 banks (including Bank Negara Indonesia, ICBC Indonesia, Bank Artha Graha, Bank Panin, and several regional development banks) for the Pemalang-Batang Toll Road Construction Project. ICBC Indonesia contributed IDR 100 billion to IDR 3.22 trillion syndicated loan, which carried the following borrowing terms: 14 year maturity and 2 year grace period (from the effective date of the loan), and a weighted average interest rate based on the Reference Rate (LPS) plus Margin or equivalent to 10.5% per annum. The purpose of the project was to construct a 39.2 km toll road linking the Pemalang area with Batang in Central Java. The road is part of the Trans-Java Expressway, which will connect Merak to Banyuwangi of the island of Java. The project officially started in 2006, but construction did not begin for nearly ten years due to lack of land acquisition readiness. Until 2015, land acquisition progress was below 5%. A groundbreaking ceremony was held on June 17, 2016 and the road was opened to traffic on November 9, 2018.

Staff comments

PT Pemalang Batang Toll Road was established based on the notarial deed of Bonardo Nasution, S.H., No. 10 dated June 15, 2006. Then, the legal basis for the establishment was updated with Deed No. 14 dated June 22, 2006 with the same Notary. The Deed of Establishment was officially endorsed by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No.C-20478.HT.01.01.TH.2006 dated July 13, 2006. PBTR obtained concession rights to the Pemalang Batang toll segment with a concession period of 40 years. PT Waskita Karya Tbk (Waskita Karya), an Indonesian state-owned construction company, owns a 99.99% ownership stake in PT Waskita Toll Road (WTR). PT Sumber Mitra Jaya is a private Indonesia company.