Jakarta. Japanese conglomerate Mitsubishi UFJ Financial Group signed a Rp 1 trillion ($80 million) syndicated loan agreement with state-controlled construction firm Waskita Karya to develop the Salatiga-Kertasura toll road in Central Java, the company announced on Thursday (18/01).

Through its subsidiary Bank of Tokyo-Mitsubishi UFJ (MUFG), the lender is one of the four that joined in the loan agreement and will also act as joint mandated lead arranger and bookrunner and serve as the security agent for the loan agreement.

The other lenders include state-controlled Sarana Multi Infrastruktur, Bank CIMB Niaga, Indonesia's fifth biggest bank by assets, and state-controlled Bank Mandiri.

"We are proud to be a part of these significant infrastructure projects in Indonesia. With our experience, expertise and financing capabilities, we want to contribute and support the infrastructure needs to further develop the economy of Indonesia," said Yusuke Katsuta, chief executive and general manager of MUFG in Indonesia, in a statement on Thursday.

The 32 km Salatiga-Kartasura toll road comprises one section of the larger TransJava toll road network. Waskita has completed about half of all toll road construction. The project is slated to be completed before Idul Fitri celebrations in June this year.

The Salatiga-Kartasura section connects Salatiga, a city in Central Java with Kartasura, a district nearby Solo city.

MUFG also participated last year in a Rp 19.25 trillion syndicated loan with 12 local and foreign lenders to state-controlled railway operator Kereta Api Indonesia for the construction of Jakarta's light rail transit network.

Other banks that participated in that loan include Bank Mandiri, Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI), Bank Central Asia (BCA), CIMB Niaga, Sarana Multi Infrastruktur (SMI) Bank DKI, Hana Bank, Shinhan Bank Indonesia, Bank Sumut and Bank Mega.

The 18-year loan contract is a much-needed investment for the project that connects Cawang in East Jakarta to the East Bekasi industrial area in West Java.

The loan contract comprises Rp 18.1 trillion in investment loans and another Rp 1.15 trillion in working capital loans for the construction of the 44-kilometer elevated track.

Since November, Kereta Api Indonesia has been the project concession holder after the government created a new financing scheme. State-controlled construction firm Adhi Karya also helped to fund part of the project.

MUFG also participated in the financing of the Central Java 2x1000 megawatt power plant, LRT project in Palembang (South Sumatra), the Balikpapan-Samarinda toll road (East Kalimantan) and the Jakarta-Cikampek II elevated toll road.