Jakarta, 25th July 2022 – PT Indonesia Infrastructure Finance (“IIF”) signed a joint syndicated loan facility agreement with PT Bank Negara Indonesia Persero (“BNI”) for the development of the Anggrek Port – Gorontalo worth Rp500 billion under the Public-Private Partnership (“PPP”) scheme on July 25, 2022 at the Ministry Office Transportation, Jakarta. The signing of this collaboration was witnessed by the Minister of Transportation Budi Karya Sumadi, Deputy Chairman of the Indonesian House of Representatives Rachmat Gobel, and the Director General of Sea Transportation Hendro Sugiatno. In this loan agreement, IIF and BNI each provided the same contribution of Rp250 billion. Overall, the development of this port requires funds of around Rp1.4 trillion.
The Minister of Transportation, Budi Karya Sumadi said “The acquisition of this financing proves that in a high idealistic spirit, investors are still able to gain trust from banks. And this is very meaningful in reducing the state’s financial burden in financing infrastructure development, especially port infrastructure in the Eastern region.”
President Director of IIF Reynaldi Hermansjah said “We hope that the Anggrek-Gorontalo Port project, which is the first brownfield PPP port project in Indonesia, can support industrial, trade, distribution and production activities as well as increase economic growth in Gorontalo Province”.
The Managing Director and CIO of IIF Idhan Harahap added “Our commitment is to support the development of infrastructure in Indonesia, and hopefully this project can run effectively and efficiently, so that it can improve Gorontalo logistics connectivity, create Indonesia’s competitiveness and have a positive impact on the economy of the people of Gorontalo and its surroundings. ”
The construction of the Anggrek Port infrastructure located in North Gorontalo Regency, Gorontalo Province is the first brownfield PPP port project in Indonesia, because the Anggrek Port – Gorontalo has been operating since 2000 under the Office of the Class II Orchid Port Organizing Unit Office of the Directorate General of Sea Transportation of the Ministry of Transportation. Since September 28, 2021, the management of the Anggrek port has been officially handed over to PT Anggrek Gorontalo International Terminal (“AGIT”), as the Implementing Business Entity as a follow-up to the auction results of the PPP project for the Gorontalo Province Orchid Port.
Deputy Chairperson of the Indonesian House of Representatives for Industry and Development, Rachmat Gobel said, “Alhamdulillah, we are grateful that the Anggrek Port – Gorontalo development project will be realized. On behalf of the people of Gorontalo, I thank the central government and the financiers. The development of the Orchid Port has long been a dream of the people, because the existing capacity has not been supportive, so that the flow of goods to Gorontalo is not smooth, which in turn makes inflation relatively high and burdens the economy, and reduces Gorontalo’s competitiveness,” said Rachmat.
“This project will strengthen the economic development ecosystem for the people of Gorontalo. It’s just a matter of how, all stakeholders starting from local governments, business actors, communities, academics work together to continue to develop Gorontalo’s economic ecosystem so that it can become a profitable investment destination,” said Rachmat.
The financing of this project is equipped with the Social and Environmental Due Diligence as IIF always applies it to every project it finances, so that this project has been recognized for its social and environmental feasibility. It is hoped that this port financing can increase economic activity in Gorontalo to develop areas including the forefront, remote and outermost.
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.
Nastantio W. Hadi
Head of Legal and Corporate Secretary
PT Indonesia Infrastructure Finance
Telp. (021) 2991 5060; Fax. (021) 2991 5061