Contract Leveraging: IIF’s Innovation to Provide Financing Access to Client

May 2021 – In early May, PT Indonesia Infrastructure Finance (“IIF”) has signed transaction with PT Duta Marine (“DM”), a private company that is mainly engaging in offshore oil and gas services business. The signing was held on Monday, May 3, 2021 at IIF’s headquarter which IIF was represented by its President Director, Mr. Reynaldi Hermansjah and DM by Mr. Mohammad Syuhul and Mr. Fiff Danar Dono as President Director and Director, respectively.

The purpose of the loan facility is to finance the development of potential project to be obtained by DM in 2021. Considering the significant amount of capital needed, IIF proposed a financing structure that utilizes DM’s existing operation and maintenance contract of Floating, Storage, and Offloading (FSO). The idea is to leverage the FSO contract value as the basis of determining the proposed loan limit to DM. This scheme enables DM to obtain cash in advance for project financing without needing to wait until the end of contract period.

Other than financial aspect, IIF also assess the implementation of social and environmental aspect by DM. IIF encourages DM to keep increasing its capacity for implementing health, safety, and environment aspects. On top of that, IIF requires any project financed with IIF’s loan facility to comply with IIF’s social and environment standard.

“This contract leveraging scheme is one of our innovations in order to provide financing structure that also maximize our client’s existing business potential. Hopefully more financing schemes are available for the development of infrastructure project in Indonesia that also keep close attention to social and environmental aspects.” as explained by Mr. Reynaldi Hermansjah, President Director of IIF.

PT Indonesia Infrastructure Finance

PT Indonesia Infrastructure Finance (IIF) is a private non-bank financial institution, which is engaged in infrastructure financing and advisory services that are professionally managed and focused on commercially viable infrastructure projects. IIF was established on January 15, 2010 at the initiative of the Government of the Republic of Indonesia – Ministry of Finance of the Republic of Indonesia together with the World Bank Group, Asian Development Bank (ADB) and other multilateral institutions.

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

Further Queries:
Nastantio W. Hadi
Head of Legal and Corporate Secretary
PT Indonesia Infrastructure Finance
Telp. (021) 2991 5060; Fax. (021) 2991 5061
corsec@iif.co.id


Road to 2050 Energy Transition Target Roadmap – The 9th Indonesia EBTKE ConEx 2020

Jakarta, November 2020 – The Indonesian Renewable Energy Society (“METI”) in collaboration with the Ministry of Energy and Mineral Resources of the Republic of Indonesia (“ESDM”) through the Directorate General of New, Renewable Energy and Energy Conservation (“EBTKE”) hosts the awaited  “The 9th Indonesia EBTKE ConEx 2020” on 23- 28 November 2020 as an annual conference and exhibition event in the field of renewable energy and energy conservation. Due to the current circumstance, this year’s event was done virtually.

The main theme event, renewable energy, is highly relevant to PT Indonesia Infrastructure Finance (“IIF”) philosophy. As a catalyst and an agent of development, renewable energy is one of IIF’s focus and evidently a significant portion of the company’s portfolio.

As one of the speakers in Mobilizing Financial Resources to Support Renewable Energy to Achieve The 2050 Energy Transition Target, Bapak Reynaldi Hermansjah conveyed his discussion with the title: “Financing for Renewable Energy Project”.

During his session, Bapak Reynaldi elaborated some notable financing from IIF to renewable energy sector, which includes Hydro Power Plant, Solar Power plant in North Gorontalo, Wind Power Plant in Sulawesi, Mini Hydro Power Plant in North Sumatra, Geothermal Power Plan in West Java and Biomass Power plant in Aceh.

“Collaboration remains key to achieve the 2050 energy transition target. Nothing is impossible when done collectively. Every stakeholder should go hand-in-hand from the Government to Financiers” said Bapak Reynaldi Hermansjah.

PT Indonesia Infrastructure Finance

PT Indonesia Infrastructure Finance (IIF) is a private non-bank financial institution, which is engaged in infrastructure financing and advisory services that are professionally managed and focused on commercially viable infrastructure projects. IIF was established on January 15, 2010 at the initiative of the Government of the Republic of Indonesia – Ministry of Finance of the Republic of Indonesia together with the World Bank Group, Asian Development Bank (ADB) and other multilateral institutions.

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

 

Further Queries:
Nastantio W. Hadi
Head of Legal and Corporate Secretary
PT Indonesia Infrastructure Finance
Telp. (021) 2991 5060; Fax. (021) 2991 5061
corsec@iif.co.id


Condensate Refining: IIF to finance PT Mirah Ganal Energi

April 2021 – Hitting two birds with one stone, is how the latest deal signed by PT Indonesia Infrastructure Finance (“IIF”) can be portrayed. On Friday, 9 April 2021, IIF signed a deal with PT Mirah Ganal Energi (“MGE”) to provide two loan facilities simultaneously: a 10-year Senior Term Loan Facility and a 10-year Non-Cash Loan Facility. The Non-Cash Loan Facility is one of the latest innovations from IIF’s trade finance product to support infrastructure needs.

These loan facilities will be used for the construction and operation of a 55 km condensate pipeline and a 600 barrel per day (bpd) mini-refinery located at the riverside of Barito River, Muara Bakah, Central Kalimantan. The Project will be the first mini-scale condensate refinery project for IIF which could support the development of similar mini-application in other potential gas or oil fields.

The condensate is a side product of gas produced from Kerendan gas field. Logistics constraint becomes the main challenge to transport the condensate to the buyer via trucking. By developing the pipeline, the condensate can be transported from the storage in Kerendan to the mini-refinery in which the condensate will be treated and converted into commercial fuels e.g. gasoline and diesel.

The refinery infrastructure is expected to serve the local fuel demand in Muara Teweh, North Barito Regency. Whereas the project will add value to the condensate and bring positive impact to the environment.

The signing ceremony took place in IIF Office, SCBD, Jakarta. IIF is represented by Mr. Reynaldi Hermansjah as President Director of IIF and MGE by its President Director, Mr. Kadafi Yahya.

“IIF as the catalyst for the development of infrastructure project always prioritizes economic and environmental benefits of its project. As of this project, not only it brings positive impact toward environment, it is the first time IIF launched our initial trade finance product. We are hitting two birds with one stone.” as remarked by Mr. Reynaldi Hermansjah.

PT Indonesia Infrastructure Finance

PT Indonesia Infrastructure Finance (IIF) is a private non-bank financial institution, which is engaged in infrastructure financing and advisory services that are professionally managed and focused on commercially viable infrastructure projects. IIF was established on January 15, 2010 at the initiative of the Government of the Republic of Indonesia – Ministry of Finance of the Republic of Indonesia together with the World Bank Group, Asian Development Bank (ADB) and other multilateral institutions.

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

 

Further Queries:
Nastantio W. Hadi
Head of Legal and Corporate Secretary
PT Indonesia Infrastructure Finance
Telp. (021) 2991 5060; Fax. (021) 2991 5061
corsec@iif.co.id


A Commitment for Sustainable Infrastructure: IIF Held Public Consultation on Social and Environmental Management System

March 2021 – On March 30th and 31st, 2021, PT Indonesia Infrastructure Finance (“IIF”) held a virtual Public Consultation on the updated Social and Environmental Management System (“SEMS”) Document 2019. The objective of this consultation is to disseminate the 2019 SEMS document version to various related stakeholders, as well as to receive inputs and recommendations to continuously improve the “SEMS” document.

SEMS document has been established since IIF’s inception and is part of the operation manual. In line with the need to update IIF SEMS from time to time, in 2018-2019 IIF was requested by Founding Shareholders to revise the 2014 SEMS version. In 2019, IIF managed to update the SEMS document and received approval from founding shareholders (later in February 2020). As part of information transparency, the SEMS document must be disseminated to the stakeholders. As it is still in a pandemic situation, the Event was held virtually.

Numerous stakeholders were invited to participate. Amongst them, there are representative of Ministry of Finance Indonesia, Bappenas, OJK, shareholders and lenders, NGOs, academics, clients and IIF’s S&E consultants.

For IIF, risk management is a crucial factor in financing infrastructure development throughout the project lifecycle. Other than managing risks of financing, operational and market, IIF also manages the social and environmental (“S&E”) risks and impacts associated with IIF’s project. This S&E risk management is in line with IIF’s mandate from founding shareholders (PT SMI, IFC, ADB and DEG) to become a catalyst in infrastructure development and a forefront enabler for a sustainable development guided by the IIF’s 8 Social and Environmental Principles (“IIF SEP”).

“As its mandate to become an enabler in developing sustainable infrastructure in Indonesia, IIF encourages SEP implementation as a form of risk management. To some, it may seem daunting in the short term. However, if we see it in the longer horizon this actually enhances projects value to its stakeholders” as remarked by Bapak Wito Tantra, Managing Director and Chief Risk Officer of IIF.

PT Indonesia Infrastructure Finance

PT Indonesia Infrastructure Finance (IIF) is a private non-bank financial institution, which is engaged in infrastructure financing and advisory services that are professionally managed and focused on commercially viable infrastructure projects. IIF was established on January 15, 2010 at the initiative of the Government of the Republic of Indonesia – Ministry of Finance of the Republic of Indonesia together with the World Bank Group, Asian Development Bank (ADB) and other multilateral institutions.

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

Further Queries:
Nastantio W. Hadi
Head of Legal and Corporate Secretary
PT Indonesia Infrastructure Finance
Telp. (021) 2991 5060; Fax. (021) 2991 5061
corsec@iif.co.id