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JICT signs loan deal to fund expansion
The Jakarta International Container Terminal (JICT) has signed a US$70-million loan deal from the International Finance Corporation (IFC), the World Bank’s investing arm, to partially fund a $160-million expansion plan at Tanjung Priok Port
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he Jakarta International Container Terminal (JICT) has signed a US$70-million loan deal from
the International Finance Corporation (IFC), the World Bank’s investing arm, to partially fund a $160-million expansion plan at Tanjung Priok Port.
The soft loan comprises a $30 million loan from IFC’s own account, repayable over seven years, and a syndicated loan from HSBC of up to $40 million, repayable over five years.
The JICT will fund the remaining $90 million for the expansion project out of its internal cash flow.
“The JICT has consistently attempted to increase efficiency and expand our capacity,” finance director Nano Aryono said after the signing last week.
“Serving as Indonesia’s main gateway for the country’s trade, the JICT must be prepared to face the expected increase in Indonesia’s exports.”
The company’s expansion began in 2008 and is scheduled to be complete by the end of 2013.
The expansion includes an additional 32 hectares of yard area, 22 additional cranes and other equipment.
The operator will also build parking areas and roads to integrate with the Jakarta Outer Ring Road, currently under construction.
“Through this expansion project, we are gradually increasing our capacity from 2 million TEUs [twenty-foot equivalent units] this year to 3 million TEUs by 2013,” Nano said.
The JICT is a joint venture company 51 percent owned by Hong Kong-based Hutchinson Port Holdings and 49 percent by state-owned port operator PT Pelabuhan Indonesia (Pelindo) II and the maritime employees’ cooperative.
Tanjung Priok Port accounts for up to 60 percent of import-export traffic through the country. Of that figure, 60 percent takes place through the JICT.
Karen Finkelston, the IFC director for East Asia and the Pacific, said her organization was seeking to invest in infrastructure as part of establishing sustainable urbanization in Indonesia.
The IFC, she added, would also invest in increasing rural income and helping Indonesia tackle climate change.
Adam Sack, the IFC country manager for Indonesia, added, “The government of Indonesia has identified very ambitious investment plans to support [economic] growth over the next five years of the new administration.
“The IFC is committed to investing hundreds of millions of dollars every year in infrastructure, in financial markets and agribusiness to support the growth in Indonesia to create jobs and opportunities, particularly for the poor.” (adh)
