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
[email protected]