Indonesia’s state-owned port operator PT Pelabuhan Indonesia (Pelindo) III has secured a syndicated loan of IDR4.5 trillion (US$343.3 million) from three state banks to be used to expand and upgrade several ports.
Bank Negara Indonesia, Bank Mandiri, and Bank Rakyat Indonesia have agreed to give funding to the port operator as it gears up to improve the service quality and operational efficiency of its ports.
Finance director of Pelindo III U Saefudin Noer said during the signing of a memorandum of understanding with the banks’ officials early this month that they intend to improve the productivity of a number of ports in order to reduce logistics and service costs.
“The users of the services of Pelindo III are mainly shipping companies. The longer they have to stay in port, the larger the cost they have to pay and [they] waste longer time resulting [in] an increase in prices,” he said, as quoted by Antara News.
He added that the cooperation forged with the banks is expected to facilitate stakeholders’ business transactions with Pelindo III.
“The services would certainly improve port productivity. [An easier and faster] financial transaction process would result in a faster business conclusion,” he said.
Rico Usthavia Frans, director of digital banking and technology at Bank Mandiri, said the support from the three state banks will include a lending facility, a treasury line facility, liquidity management, and a number of other services.
He added that in June this year, the three banks already provided the syndicated credit of IDR4.5 trillion to Pelindo III.
So far, the company has drawn IDR1 trillion from the loan, and is looking for new sources of capital for the next fiscal year to reduce dependence on state capital.
Pelindo, which operates in the provinces of East Java, Central Java, South Kalimantan, Central Kalimantan, Bali, West Nusa Tenggara, and East Nusa Tenggara, reportedly intends to modernize 10 dilapidated seaports, of which nine are passenger ports, to raise tourist arrivals in these areas.
Pelindo said it has begun seeking bids for the projects and will be applying for the needed permits and licenses. The firm also disclosed plans to undertake slight improvements at some of its larger ports, mainly to set up different entrances for people, animals, and cargoes.
The funding comes as the government vows to make the country’s maritime shipping industry a key engine of growth.
“Ports are one of the main infrastructure in driving the country’s economic growth. A lot of goods flow via ports, both domestic and international goods,” said Herry Sidharta of Bank Negara Indonesia.
Photo: Sakurai Midori
