BRI involves in financing Trans Papua KPBU segment

PT Bank Rakyat Indonesia (Persero) Tbk or BRI is involved in the syndicated financing for the Mamberamo-Elelim segment of the Trans Papua Road project's Jayapura-Wamena Section in Highland Papua Province. BRI Wholesale & Institution Business Director Agus Noorsanto said that BRI's involvement in the project is real evidence of the company's contribution in supporting the development of national strategic infrastructure.

"The high interest of financial institutions in financing the project is reflected in the oversubscription rate of 1.27 times, which shows the have great trust in the Trans Papua government-business cooperation scheme (KPBU) project's prospects," said Agus in Jakarta on Jan. 8, 2025.

The syndicated financing also involves four other financial institutions, namely PT Sarana Multi Infrastruktur (Persero) or SMI, PT Bank Negara Indonesia (Persero) Tbk or BNI, PT Bank Syariah Indonesia Tbk or BSI, and Bank Pembangunan Daerah Papua (Bank Papua). The total syndicated financing value reached Rp2.6 trillion, consisting of a conventional financing scheme worth Rp2.36 trillion and a sharia financing scheme worth Rp300 billion.

PT Hutama Mambelim Trans Papua (PT HMTP) has officially signed a syndicated financing agreement for the Trans Papua KPBU project. BRI and SMI act as coordinating banks for the agreement, while BNI acts as the joint mandate lead arrangers and bookrunners (JMLAB).

As one of the coordinating banks, Agus said that BRI is committed to continuing to encourage synergy between the KPBU-implementing business entity (BUP), financial institutions, PT Penjaminan Infrastruktur Indonesia (PII), and the government.

"The collaboration is expected to be a strong foundation to support the success of other strategic projects through the KPBU scheme in the future," he said.

The Trans Papua Road KPBU project has a total investment value of Rp3.3 trillion, with a concession period of 15 years covering two years of construction and 13 years of service. The 50.14 kilometer (km) road is intended to be the main route for logistics transportation connecting Jayapura City, Papua Province and Jayawijaya Regency, Highland Papua.

PT HMTP, which was formed through a consortium between PT Hutama Karya (Persero) and PT Hutama Karya Infrastruktur, acts as the BUP for the KPBU. The project uses the availability payment (AP) scheme, where the government provides periodic payments based on the agreed quality of service. The scheme is also supported by a payment guarantee from PT PII.