WASHINGTON: State-owned port operator PT Pelindo III hopes to realize its expansion ambitions this year after securing funding from three state-owned lenders. The company recently secured loans of up to Rp 4.5 trillion (US$342.52 million) from a syndicate consisting of Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI) and Bank Mandiri. Pelindo operates in several provinces, namely East Jawa, Central Java, South Kalimantan, Central Kalimantan, Bali, West Nusa Tenggara and East Nusa Tenggara.
Supported by the new funding, the company is seeking to totally revamp 10 ailing seaports. The 10 ports are in Kalabahi, Ende, Kupang, Ipi, Waingapu in East Nusa Tenggara; Maumere in Flores; Lembar and Bima in West Nusa Tenggara; Badas Island in Riau Islands; and Tegal in Central Java. Pelindo president director Orias Petrus Moedak, who was appointed just three months ago, said it had started tenders for the renovation of the ports, conducted at the regional office level.
It hopes to develop the ports — nine of which are passenger ports — into tourist-friendly facilities, and provide for cruise ships. “The 10 areas have great tourism potential, but tourists are discouraged from visiting because the ports aren’t decent,” he said. Each port renovation will cost around Rp 15 billion. By the time the renovations are completed, the ports are also expected to help in easing distribution of goods in their areas.
Although Pelindo has started the tender process for the ports, Orias said the company still needed to obtain permits and other necessary documents from several institutions including local administrations, the Transportation Ministry and the Environment and Forestry Ministry. The firm is also set to make minor renovations to some larger ports, such as Tanjung Perak port in Surabaya, East Java, and Labuan Bajo in Sumbawa, East Nusa Tenggara, among others.
“We want to make improvements to already-developed seaports by separating the entrances for passengers, goods and animals. Right now, you can see people queuing with crates and even horses and goats to board a ship,” Orias said. As of June, Pelindo had drawn down Rp 1 trillion of the syndicated loan. It is exploring new funding opportunities for the next fiscal year to reduce dependence on state capital.
The company was initially included on the list of state firms to receive state capital injections, but was ultimately taken off the list. One funding opportunity is from the capital market and the company is now preparing to issue Rp 5 trillion of debt papers to absorb potential repatriated funds from the tax amnesty.
Loans from regional development banks are another opportunity that it is currently assessing. Meanwhile, BNI corporate business director Herry Sidartha, who represented the three state-owned lenders, said the disbursement of the loan would occur in two phases. BNI and Mandiri will each provide Rp 2 trillion, while BRI will provide Rp 500 billion. Herry said the lenders would also provide financial management support to Pelindo, such as trade finance, treasury line facilities and liquidity management. “Seaports are a major infrastructure element in boosting economic growth. The movement of goods is conducted there, both for domestic and international trade,” he said.
