PT PP (Persero) Tbk, one of the leading, leading, and best construction and investment companies in Indonesia (“PTPP”) through an associated entity, namely PT Celebes Railway Indonesia (“CRI”) has signed a senior term loan syndication facility and financing musyarakah mutanaqisah. The signing of the financing facility will be used for the operation of the Makassar-Parepare public railway infrastructure located in South Sulawesi Province. The signing was carried out under the Government Cooperation with Business Entity (“KPBU”) scheme.
The signing ceremony which was held on Thursday (03/06) at the Ritz Carlton Hotel, Jakarta was attended by the Minister of Transportation Budi Karya Sumadi, Director General of Railways of the Ministry of Transportation of the Republic of Indonesia Zulfikri, Director General of Financing and Risk Management of the Ministry of Finance of the Republic of Indonesia Luky Alfirman, Director of PTPP President Novel Arsyad, PTPP Finance and Risk Management Director Agus Purbianto, CRI President Director Helmi Adam, PT Indonesia Infrastructure Finance (“IIF”) President Director Reynaldi Hermansjah, PT Sarana Multi Infrastruktur (Persero) (“SMI”) President Director Edwin Syahruzad , and President Director of PT Bank Syariah Indonesia Tbk (“BSI”) Hery Gunardi. The signing of the syndicated facility was signed by CRI, and the lenders consisting of IIF, SMI, and BSI and witnessed directly by the Minister of Transportation. The signing of the loan and financing syndicated facility was carried out by implementing the Covid-19 Health protocol strictly.
The Makassar – Parepare Railway line construction project is the first railway construction project in Indonesia that uses a PPP scheme and a service availability payment scheme. The railway line is targeted to operate commercially in 2022 to serve South Sulawesi Province which includes 5 (five) regencies or cities, namely: Maros Regency, Pangkajene and Islands Regency, Barru Regency, Makassar City, and Parepare City. Later, the Makassar–Parepare Railway will serve as a means of transportation to support the demand for passenger transport and goods movement as well as build national connectivity. The Makassar – Parepare Railway construction project is expected to have a direct or indirect impact on accelerating national economic growth and the welfare of the Indonesian people, especially the people in South Sulawesi Province.