Jakarta, June 2021 – PT Indonesia Infrastructure Finance (“IIF”) expands its existing portfolio sector by adding railway financing commitment. In the second quarter of this year, IIF and 2 (two) other financial institutions signed a Facility Agreement with PT Celebes Railway Indonesia (“CRI”), as the Implementing Business Entity (“IBE”), to provide syndicated loan facilities for the construction and development of Makassar – Parepare Railway Line This project is IIF’s initial railway sector.  Other than relevant parties, also present on the signing ceremony was the Ministry of Transportation.

The 142 km Makassar – Parepare railway project is a Government initiative project and is a part of National Strategic Project. As initial development of Trans-Sulawesi National Railway, this project is expected to support the enhancement and distribution of national economic growth in Sulawesi. This project is secured with Government guarantee through PT Penjaminan Infrastruktur Indonesia (Persero).

This deal is also part of the continuous support to PTPP group. Previously, IIF has provided loan facility to one of PTPP group, namely PT PP Krakatau Tirta which involves in drinking water supply system.

IIF will provided an added value to the project through the social and environmental aspect. IIF exhibits its ability in its implementation of Social and Environmental principles while cooperating in the syndication for a Railway Project Financing.

“Railway is considered to be one of a mass transportation to serve the public needs on transportation as its ability to carry passengers and goods in high quantities with relatively short travel time without any obstacle alongside the track line. This mode is currently necessary in supporting mobilization society and flow of goods. Mandated being a catalyst in sustainable infrastructure development, IIF supports the acceleration of infrastructure development in Indonesia” 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