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Chinese company provides Rp 23.3 trillion in direct equity investment for toll road construction
PT Jasa Marga and PT China Communications Construction Indonesia (CCCI) will team up to build the Probolinggo-Banyuwangi toll road, the last section of the trans-Java toll road.
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Workers continue work on the Cimanggis-Cibitung toll road on Jl. Cibubur Alternatif in Bekasi, West Java. PT China Communications Construction Indonesia (CCCI) will provide Rp 23.3 trillion in direct equity investment for construction of a toll road linking Probolinggo and Banyuwangi in East Java. (JP/P.J. Leo)
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ive companies have signed two separate agreements covering cooperation in the construction of a toll road and in supply chain financing with a total investment commitment of Rp 29.3 trillion (US$2.07 billion).
The first agreement was signed on Monday by state-owned toll road operator PT Jasa Marga and PT China Communications Construction Indonesia (CCCI) for the construction of a toll road that will link Probolinggo and Banyuwangi in East Java, with a total investment of Rp 23.3 trillion.
The second agreement was signed by PT Wijaya Karya and PT Jasa Sarana with PT ICDX Logistik Berikat (ILB) for customized supply chain financing in construction worth Rp 6 billion. Both cooperation agreements were facilitated by the Center for Private Investment (PINA).
National Development Planning Minister Bambang Brodjonegoro said under the first agreement, PT Jasa Marga received a direct equity investment of Rp 23.3 trillion from CCCI to build the Probolinggo-Banyuwangi toll road
The funds provided by the Chinese company will be in the form of direct equity investment, not loans, so that the state-owned company will have no obligation to repay the money used for the toll road construction, Bambang said.
He expressed hope the equity financing provided by the Chinese company would also inspire other companies to pursue similar strategies to finance infrastructure projects.
Jasa Marga’s business development director Adrian Priohutomo said the 172 kilometer Probolinggo-Banyuwangi toll road would be the last section of trans-Java toll road,” he said.
