The government is pushing to build more seaports to further facilitate trade between islands. (Antara Photo/Sahlan Kurniawan)

Bank Mandiri Disburses Rp 3t in Loans for Pelindo IV

MAY 13, 2015

Jakarta. State-controlled lender Bank Mandiri will be disbursing Rp 3 trillion ($227 million) in loans to state-owned seaport operator Pelabuhan Indonesia IV, so that the latter can expand its activities in the eastern parts of the country, the lender said in a statement on Tuesday.

Royke Tumilaar, director of corporate banking at Bank Mandiri, Indonesia's biggest lender by assets, and Pelindo IV president director Mulyono signed a memorandum of understanding on the 7.5-year loan.

Royke said the loan is to support Pelindo IV projects like Makassar New Port and to help the operator improve its equipment and facilities.

Pelindo IV currently operates 26 ports in eastern Indonesia.

The disbursement of the loan, he said, is also meant to accelerate national infrastructure development — in line with the "sea toll" project announced by President Joko Widodo.

"We are pleased that through the synergy between these state enterprises, Bank Mandiri can prove its commitment in strengthening national maritime infrastructure," Royke said in the statement.

Joko had announced that his administration would focus on maritime development to better connect the sprawling archipelago. Since taking office in October, the president has expressed his ambition to turn Indonesia into a global maritime center and to build 24 new seaports — and 15 new airports — by 2019.

Bank Mandiri has so far disbursed Rp 17.1 trillion in loans for the maritime sector.

The development of Makassar New Port is part of Pelindo IV's efforts to fulfill the cargo port needs in the South Sulawesi capital and to boost connectivity between various islands in eastern Indonesia.

"Makassar New Port will be integrated with freight railway projects in South Sulawesi, which will make the distribution of goods easier," the Bank Mandiri statement said.