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tate-run construction firm PT Waskita Karya said on Tuesday it had secured a loan of Rp 850 billion (US$68.12 million) from the Indonesian Export Financing Agency (LPEI), popularly known as Indonesia Eximbank, to finance its toll road project in Central Java.

Waskita president director M. Choliq said the loan would be allotted to the first stage of construction for a toll road connecting Pejagan in Brebes to Pemalang, both in Central Java.

The Pejagan-Pemalang toll road will span about 57.5 kilometers, comprising four sections. The first stage of the construction, which connects Pejagan to East Brebes, will consist of two sections ' the first will be 14.2 kilometers long and the second will be six kilometers.

Total investment for the toll road is estimated to hit Rp 5.52 trillion, with the first stage projected to absorb Rp 2.34 trillion.

'The construction for the first section will need around Rp 850 billion in funds and the loan we get from Eximbank will all be used for that section. We are still looking for other sources to funding for the other sections,' Choliq said.

Waskita finance director Tunggul Rajagukguk meanwhile said that out of the total investment needed for the toll road, about 70 percent will come from loans while the remainder will be from the company's own cash.

'We hope that the first stage of the construction will conclude in December next year. We expect to commence the construction for the second stage, which comprises the third and fourth section, early in 2016 and to finish it by 2017,' Tunggul explained.

Waskita acquired the Pejagan-Pemalang toll road earlier this year, from MNC Investama, part of tycoon Hary Tanoesoedibjo's MNC Group business empire, for Rp 300 billion. MNC acquired the toll road from businessman and politician Aburizal Bakrie's heavily indebted property developer Bakrieland Development back in 2012.

Eximbank chief of executive officer (CEO) Ngalim Sawega acknowledge that the loan channeled to Waskita was the agency's first-ever to be granted to toll road investment.

While lending for domestic toll road projects was unusual for the agency, Ngalim said it was still in line with Eximbank's core function given the fact that the toll road would connect industrial estates to ports in the surrounding area.

Therefore, it would help boost national export activity.

'Besides working on export-supporting toll road projects, Waskita is also intensely working on overseas projects. They can be a good ground for future cooperation,' he said.

Out of Waskita's estimated Rp 18 trillion in contracts this year, around 30 percent comes from overseas construction projects, mainly in gulf countries and in Timor Leste.

Ngalim added that Eximbank also took part in financing Waskita's projects like King Abdullah Financial District and the high-profile expansion of the Al-Masjid Al-Haram Mosque in Mecca in Saudi Arabia, in cooperation with construction company Saudi Binladin Group.

The Pejagan-Pemalang toll road project will be handled by Waskita's newly established subsidiary Waskita Toll Road.

Waskita has allocated Rp 500 billion to set up toll road subsidiaries this year, with the aim of boosting the unit's contribution to the company's total revenue. For now, toll roads contribute to around 4 percent of Waskita's revenue.

Waskita is also working on the Bekasi-Cawang-Kampung Melayu (Becakayu) toll road project. The Becakayu toll road will connect Bekasi in West Java with East Jakarta, with total investment expected to hit Rp 5.4 trillion. Construction of the toll road's first section, which will be around 11 kilometers, was launched late October and is scheduled to conclude in 2016.