Surya Semesta Internusa president director Johannes Suriadjaja, center left, and IFC chief executive Philippe Le Houérou signing the loan agreement. (Photo courtesy of IFC)

Surya Semesta Receives $100m IFC Loan to Build Green Industrial Estate in Subang


AUGUST 03, 2018

Jakarta. The International Finance Corporation, a private-sector financing arm of the World Bank Group, announced on Friday (03/08) that it has approved a $100 million loan to Surya Semesta Internusa for the construction of a new industrial estate in Subang, West Java.

The 2,000-hectare "green" industrial park is strategically located along the Trans-Java Toll Road, between the recently opened Kertajati International Airport and Patimban Sea Port, currently under development.

The Subang Industrial Estate will feature modern infrastructure to attract domestic and international manufacturers. It is expected to create more than 34,000 job opportunities.

"We are extremely pleased to partner with the IFC on the development of the new Subang Industrial Estate. As the IFC is providing the long-term capital, we believe our collaboration will help set a new sustainable green standard for the sector through the latest technology and spur other industrial-estate developers to follow a similar path," Surya Semesta Internusa president director Johannes Suriadjaja said in the statement.

The industrial area will feature environmentally friendly technologies, including electric transportation and solar panels.

The IFC said it will be the first industrial estate that meets its green building standard, which will see Surya Semesta Internusa and its manufacturing tenants aiming to achieve at least 20 percent energy, water and material savings compared with other developments.

Jakarta-based Surya Semesta Internusa is engaged in property development, construction, industrial estates and the hospitality business. The company operates Gran Melia Hotel in Jakarta, Banyan Tree Ungasan Resort, Batiqa Hotels and other property projects and assets.

Tourism Development

IFC chief executive Philippe Le Houérou said the lender also plans to boost investment in the Indonesian tourism sector to support the government's efforts to accelerate tourism development in key destinations across the archipelago.

"The tourism sector offers tremendous opportunity for the future growth of Indonesia. For the country to unlock its true potential, tourism development must move increasingly beyond Bali to other destinations. This is a key objective of the government's national tourism plan," Houérou said in a statement.

The government seeks to boost its revenue by attracting more foreign tourists and encouraging overseas investment in the country's tourism sector. It is currently building infrastructure and developing amenities, while also promoting other tourism destinations besides Bali.

To achieve this, the government announced plans in 2016 to promote and prioritize the development of 10 destinations, also known as the "Ten New Balis," which are deemed to have tremendous tourism potential. These include Morotai in North Maluku, Wakatobi in Southeast Sulawesi and Labuan Bajo in East Nusa Tenggara.

"We will support the government's goal by boosting investment in tourism projects, particularly in less developed locations and in an environmentally sustainable manner," Houérou said.