JAKARTA: Publicly listed Bank Jabar Banten (BJB) plans to increase lending for infrastructure projects this year to support the government’s program and boost economic growth.
The bank booked Rp 6.8 trillion (US$486.2 million) in its loan portfolio for infrastructure development last year and aims to increase that amount to at least Rp 8 trillion this year, said BJB president director Ahmad Irfan.
“As one of Indonesia’s 14 top banks, BJB is committed to supporting the country’s infrastructure development and will increase financing to many projects this year,” Irfan said in a press statement.
The commitment was also expressed during the bank’s investor gathering on infrastructure, on Friday, which was also attended by Coordinating Maritime Affairs Minister Rizal Ramli, Bank Indonesia (BI) economic and monetary policy director Juda Agung and lawmaker from House of Representatives’ Commission XI M. Misbakhun.
Irfan said the bank, owned by the West Java and Banten regional administrations, had financed a number of infrastructure projects, such as power plants and toll roads in Java and other parts of the country.
He said the bank was involved in the financing of four toll road projects, namely Cikopo-Palimanan, South Sentul-Kedung Halang-Kedung Badak-Simpang Yasmin and Kanci-Pejagan in West Java, and Gempol-Pandaan-Karangjati in East Java.
The bank also participated in the financing of the Keban Agung coal-fired power plant in South Sumatra and 13 others across the country, he said.
Aside from participating in syndicated loans, Irfan said BJB also financed construction companies, especially those related to central and regional governments.
For infrastructure projects in 2016, Irfan said BJB was in the process of joining the financing for the West Java International Airport, as well as toll roads in West Java, namely Soreang-Pasir Koja and Bogor-Ciawi, and trans-Sumatra in Sumatra.
Construction of the West Java International Airport, which will take place in Kertajati, Majalengka in West Java, has been stalled for a decade under the provincial administration.
President Joko “Jokowi” Widodo has assigned the Transportation Ministry to expedite the airport project and expects development to be completed by next year, saying that “it has taken six years [for the land procurement] and I don’t want construction to take even longer.”
The airport, which is expected to handle 5.6 million passengers a year, is intended to serve as an alternative to ease traffic to and from Husein Sastranegara International Airport in Bandung, as well as Soekarno-Hatta International Airport in Jakarta.
The West Java administration set aside only Rp 500 billion for the development this year, while the estimated amount needed for the project’s overall construction is Rp 2.5 trillion. The gap will be met by the ministry using its allocated budget, according to Jokowi.
The ministry, previously only in charge of developing the airport’s air infrastructure, has spent Rp 375 billion to date on building the runway out of the Rp 1 trillion investment required for the air infrastructure.
Previously, the regional administration, through province-owned enterprise PT Bandara Internasional Jawa Barat (BIJB), was in charge of the airport’s land infrastructure construction, a task that will now be handled by the ministry.
