Indonesian construction co Hutama Karya raises $35.11m debt for Trans Sumatera toll road project

Indonesia’s state-owned infrastructure financing firm PT Sarana Multi Infrastruktur (SMI) has signed an agreement to provide loan worth Rp481 billion ($35.11 million) to the state-owned construction firm PT Hutama Karya for the construction of Medan-Binjai toll road section, which is part of the Trans Sumatera toll road network.

Chief executive (CEO) of SMI, Emma Sri Martini said the loan facility is 30 per cent of the total investment needed to develop the toll road project, which will reach Rp1.6 trillion. The loan facility is given with a tenor of 25 years and grace period of 15 years. Previously, Hutama Karya received capital injection from the government amounting to Rp3.6 trillion to support Trans Sumatera toll road development.

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