Month: November 2019

Jakarta, October 2019 – On October 23, 2019, PT Indonesia Infrastructure Finance (“IIF”) and PT Pemalang – Batang Toll Road (“PBTR”) signed an IDR600 billion Cash Deficiency Support (“CDS”) facility loan agreement. Hence, IIF performs its role as a catalyst as well as enabler in infrastructure financing in taking part of Government of Indonesia (“GoI”) attempts to boost the nation’s infrastructure development. CDS, a breakthrough product facility, enables PBTR to secure cash which commonly experienced in newly operating toll roads as it waits for traffic to ramp up.

PBTR, started its operation commercially in December 2018 with length of 39.2 km that crosses three regencies in Central Java, namely Pemalang, Pekalongan, and Batang. As part of Trans Java Toll Road, PBTR project is expected to ease the traffic burden of Pantura, expedite the logistics supply chain and support the development of tourism especially in Central Java.

The CDS facility signing took place at the IIF Office in Jakarta, signed by IIF’s President Director, Mr. Reynaldi Hermansjah and PBTR’s President Director, Mr. Supriyono. The event was witnessed by management of PT Waskita Toll Road and PT Sumber Mitra Jaya as shareholders of PBTR and PT Bank Negara Indonesia (Persero) Tbk as Agent.

Mr. Herwidiakto, President Director of Waskita Toll Road (“WTR”), 60% owner of PBTR, has expressed his appreciation to IIF as follows, “As Waskita Toll Road has been mandated to accelerate the infrastructure development in Indonesia through development of strategic national toll road projects, Cash Deficiency Support offered by IIF will support PBTR   as it waits for traffic to ramp up.” Mr. Herwidiakto further added as Waskita Toll Road currently owns and operates 18 toll road projects with road length of over 1,000 kms, he hopes that IIF will be able to provide similar CDS facilities to other WTR projects, many of which have recently reached commercial operation.

Mr. Supriyono, President Director of PBTR added, “PBTR is grateful for IIF’s contribution to the Project.” He further noted that long tenor and innovative structure are two features that complement the Senior Term Loan provided by syndication banks to cover for constructions expenses.

Mr. Reynaldi Hermansjah, President Director of IIF added, “The CDS Facility to PBTR affirms IIF’s commitment to be the enabler of infrastructure financing in Indonesia. The deal marks an important milestone as we were able to offer an innovative solution not commonly provided by conventional banks in line with its mandate as the catalyst of infrastructure financing in Indonesia. IIF is proud to take part of the success story of PBTR, one of Strategic National Projects.” He also remarked, “As an institution highly committed to Social and Environmental (S&E) principles, IIF is pleased to work together with PBTR who has shown full commitment to S&E compliance. IIF’s support to PBTR is in line with recent GoI’s Sustainable Financing initiative and IIF is working closely with PBTR to set a blueprint of sustainable toll road development projects in Indonesia.”

“The S&E Principles implementation in PBTR, hopefully, could be a good picture of sustainable toll road development in the future”, Reynaldi said.

About PT Indonesia Infrastructure Finance:

PT Indonesia Infrastructure Finance (IIF) is a private non-bank financial institution, that engages in infrastructure financing and advisory services that is managed professionally and focuses on commercially viable infrastructure projects. IIF is established by the Government of the Republic of Indonesia cq. Ministry of Finance of the Republic of Indonesia along with World Bank, Asian Development Bank (ADB) and other multilateral institutions, in accordance with the Regulation of the Minister of Finance of the Republic of Indonesia (PMK) No 100 of 2009 regarding Infrastructure Financing Company. IIF was established on August 6, 2010, through the Decree of Minister of Finance (KMK) No 439/KM.10/2010.

IIF’s purpose is to be a catalyst to accelerate and to improve private participation in infrastructure development in Indonesia. IIF provides fund based products such as long-term loan and non-fund based product such as guarantees, and other services relating to infrastructure projects.

In its operations, IIF applies best practices based on international standards in its credit, risk management and all aspects of its corporate governance, and in implementing international social and environmental protection standards to ensure sustainability of infrastructure development in Indonesia.

About PT Pemalang Batang Toll Road (PBTR)

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.

PT Pemalang Batang Toll Road is here to contribute actively and fully to the government’s commitment and priorities in infrastructure development. PT Pemalang Batang Toll Road focuses on the construction and management of the Pemalang Batang toll road which stretches 39.2 kilometers (km) which is divided into 2 sections, namely Section I (Pemalang – Pekalongan) with a length of 23.3 km and Section II (Pekalongan – Trunk) with a length of 15.9 km. This toll road has a large intersection with the eastern end of the Batang – Semarang Toll Road and the western end of the Pejagan – Pemalang Toll Road, both of which are already operating. The Pemalang – Batang toll road is part of the Trans Java Toll Road which will later connect Merak, Banten to Banyuwangi, East Java.

About PT Bank Negara Indonesia (Persero) Tbk.

PT Bank Negara Indonesia (Persero), Tbk (hereinafter referred to as “BNI” or “Bank”) was originally established in Indonesia as a central bank under the name “Bank Negara Indonesia” based on Government Regulation in Lieu of Law No. 2 of 1946 July 5, 1946. Furthermore, based on Law No. 17 of 1968, BNI was designated “Bank Negara Indonesia 1946”, and its status became a State-Owned Commercial Bank. Furthermore, BNI’s role as a Bank which is mandated to improve the people’s economy and participate in national development is confirmed by Law No. 17 of 1968 concerning Bank Negara Indonesia 1946.

Based on Government Regulation No. 19 of 1992, on April 29, 1992, the legal form of BNI was changed to become a Limited Liability Company (Persero). Adjustment of legal form to Persero, stated in Deed No. 131, July 31, 1992, was made before Muhani Salim, S.H., which had been announced in the State Gazette of the Republic of Indonesia No. 73 of 11 September 1992 Supplement No. 1A.

At present, 60% of BNI’s shares are owned by the Government of the Republic of Indonesia, while the remaining 40% are owned by the public, both individuals and institutions, domestic and foreign. BNI is now listed as the 4th largest national bank in Indonesia, in terms of total assets, total loans and total third party funds. In providing integrated financial services, BNI is supported by a number of subsidiary companies, namely BNI Syariah Bank, BNI Multifinance, BNI Securities, BNI Life Insurance, and BNI Remittance.

BNI offers fund storage and loan facilities in the corporate, medium and small segments. Some of the best products and services have been adapted to the needs of customers from childhood, adolescents, adults, until retirement.

Further Queries:

Nastantio W. Hadi
SVP Legal and Corporate Secretary
PT Indonesia Infrastructure Finance
Ph. (021) 299 15060; Fax. (021) 299 15061
[email protected]

Jakarta, November 2018 – PT Indonesia Infrastructure Finance (“IIF”) plans to issue the first shelf-registration bond through the Company’s second Initial Public Offering which is expected to raise fund of Rp. 3.000.000.000.000,- (three trillion Rupiah). In the first phase in 2019 is to raise fund of Rp. 1.500.000.000.000,- (one poin five trillion Rupiah). The use of proceed is allocated for business expansion purposes and to refinance IIF’s existing pricipal loan.

Bonds will be issued in three series where the Series A is due on December 2020, Series B is due on December 2022, and Series C is due on December 2024. IIF is confident with this bond issuance due to promising future opportunities of the Company’s such as flourishing infrastructure sector and AAA Rating accredited by PT Pemeringkat Efek Indonesia (Credit Rating Indonesia).

Infrastructure development is one of the highest development priorites of the Indonesian Government, thus making the National infrastructure market highly promising. More than Rp6000 Trillion is needed to boost the nation’s infrastructure development, thereby triggering high demand for infrastructure financing. Such opportunity provides room for IIF to accelerate and to improve private participation in infrastructure development in Indonesia. This opportunity further supports its mandate as a catalyst for financing infrastructure development in Indonesia. Furthermore, as part of financing scheme, IIF conveys Social and Environmental Principles (“SEP”) to the investors as a form of its commitment for sustainable infrastructure development.

IIF has also strong support from its shareholders namely PT Sarana Multi Infrastruktur (Persero) (“SMI”), International Finance Corporation (“IFC”), Asian Development Bank (“ADB”), Deutsche Investitions- und Entwicklungsgesellschaft mbH (“DEG”) and Sumitomo Mitsui Banking Corporation (“SMBC”).

CGS-CIMB Sekuritas Indonesia, Danareksa Sekuritas, Mandiri Sekuritas, Indo Premier Sekuritas, and Trimegah Sekuritas Indonesia are the Joint Lead Underwriter (“JLU”). Acting as the Capital Market Supporting Professionals are; Assegaf Hamzah & Partners as the legal consultant, Ernst & Young as the independent auditor, and PT Bank Mega, Tbk. as the trustee.

IIF hosted the investor gathering at the Ritz-Carlton, Jakarta. The event was held on Monday morning on the 25th of November 2019. The event was commenced with the presentation regarding the company’s performance by IIF’s President Director, Bapak Reynaldi Hermansjah and followed by the Representative from the JLU presented regarding bond offering structure, timeline, and coupons.

PT Indonesia Infrastructure Finance:

PT Indonesia Infrastructure Finance (IIF) is a private non-bank financial institution, that engages in infrastructure financing and advisory services that are managed professionally and focuses on commercially viable infrastructure projects. IIF’s core business aims to support the development and financing of infrastructure in Indonesia by engaging the private sector in both domestic and international and multilateral institutions, thus thriving to be a catalyst.

IIF is established by the Government of the Republic of Indonesia. Ministry of Finance of the Republic of Indonesia along with World Bank, Asian Development Bank (ADB) and other multilateral institutions, in accordance with the Regulation of the Minister of Finance of the Republic of Indonesia (PMK) No 100 of 2009 regarding Infrastructure Financing Company. IIF was established on August 6, 2010, through the Decree of Minister of Finance (KMK) No 439/KM.10/2010.

Products provided by IIF includes senior loan, subordinate loans, and mezzanine loans available in Rupiah (IDR) and the United States Dollar (USD) along with various fee-based services. Advisory services offered by IIF covers financial advisory and project transaction catered to the Public and Private sectors.

In its operations, IIF applies best practices based on international standards in its credit, risk management and all aspects of its corporate governance, and in implementing international social and environmental protection standards to ensure the sustainability of infrastructure development in Indonesia.

Jakarta, October 2019 – On October 25, 2019, PT Indonesia Infrastructure Finance (“IIF”) has engaged a Memorandum of Understanding (“MoU”) with Indonesia Toll Road Authority (“BPJT”) for the technical support cooperation on sustainable toll road projects development. This commitment demonstrates its purpose to prospering social and environmental principles for Indonesia’s infrastructure development, specifically in the toll road sector. The signing held in Bina Marga Building, Ministry of Public Works and Public Housing. IIF utilized the signing ceremony to hold a knowledge sharing session, presented by the Advisory division and Social and Environmental Division (“SED”) of the Company with the topic discussion of sustainable toll road development.

The sharing session was the Company’s affirmation effort to escalate the level of S&E provisions on Indonesia toll roads development projects. Mr. Reynaldi Hermansjah, President Director of IIF, in his opening speech, highlighted IIF’s role in being the catalyst in accelerating Indonesia’s infrastructure developments and being the enabler in implementing responsible infrastructure projects, benefiting socially and environmentally.