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