LONDON: State port operator PT Pelabuhan Indonesia (Pelindo) II plans to develop two new ports next year and upgrade Cirebon Port in West Java in a bid to expand its logistics services.
Pelindo II corporate secretary Banu Astrini said the two new ports would be located in Sorong, West Papua, and in Kijing, West Kalimantan.
“If all goes according to plan, the groundbreaking for the Sorong and Kijing ports will happen in 2016,” Banu explained in a text message.
Banu said the state-owned company was currently developing a final plan for the Sorong and Kijing ports. Investment is expected to amount to Rp 3 trillion (US$219.1 million) for the Sorong port and Rp 4.2 trillion for the Kijing port.
“The funding will come from the company’s internal funding and from the proceeds of our global bond issuance this year,” Banu said, adding that the company did not plan to use money from the state budget for the development of the ports.
The company issued a global bond valued at $1.6 billion early this year. The global bond was divided into two series with the first series valued at $1.1 billion with 4.25 percent interest that would mature in 10 years. The second series was valued at $500 million with 5.375 percent interest that would mature in 15 years.
The bond issuance made Pelindo II the first state-owned company to issue a global bond, according to its finance director Orias Petrus Moedak as reported by kontan.co.id.
Orias added the proceeds from the bond issuance would also be used to finance the development of some other ports including the New Priok Port in Jakarta and the Palembang Port in South Sumatra in the first quarter of 2017.
