Social & Environmental

State-Owned Enterprise EPC Contractor for Infrastructure Projects

Project Summary

Summary

In December 2021, IIF signed an agreement to provide a Loan Facility to a State-Owned Enterprise company (the “Company”) with business activities focuses on Engineering, Procurement, and Construction (“EPC”) for infrastructure project such as transportation infrastructure (road/toll road/bridge), irrigation, electricity, and building construction. The Loan Facility is intended to serve as a working capital to finance construction works of several infrastructure projects within the IIF mandated sector.

Initially, there are four (4) approved / underlying projects which included construction of main distribution network of regional drinking water supply system in North Sumatera, Road Preservation Project in West Kalimantan and Central Java, and Road and Bridge Preservation Project in East Java. Of these 4 Projects, 3 projects have been paid off, hence only one project remains located in East Java. Following the completion of 3 Projects, in June 2023 the Company proposed two (2) new Projects to be included as Approved Projects. Both Projects are Construction of Toll Road Project and Construction of Work Road Access as part of the new Ibu Kota Negara development in East Kalimantan. Given the nature of the Company activities as part of join operation contractor for both Projects, In terms of Social and Environmental aspects, this project is categorized as a Category B project as the potential risks and impact is limited and can be avoided and mitigated by adhering to IIF S&E Principles and appropriate implementation of mitigation. measures during the project construction.

Project S&E Document

Project S&E Document

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Last Update: September 2023