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

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.

Additional details

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.

Number of official sources

3

Number of total sources

6