Bank of Japan Ready to Fund Rapid Train Project Jakarta-Surabaya

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Nov 14, 2018
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Japan Bank for International Corporation or JBIC expressed its readiness to participate in funding the Jakarta train project. JBIC Managing Director Tamadashi Maeda said it was interested in more activities in public transport projects in Indonesia, one of which is the Jakarta - Surabaya fast train.
Japan, he added, is not only interested in funding, but also how to make infrastructure projects more attractive to private investors. Previously, they missed an opportunity in the Jakarta-Bandung railway project and needed a lot of things to be reviewed first. JBIC assesses Quick Train Jakarta-Surabaya as an important project for Indonesia. Its presence will not only facilitate passenger traffic but also cargo alias goods. The project, Tamadashi added, will be a good supporting infrastructure for the transport system.
In general, JBIC said it was discussing with the Indonesian government on the most appropriate mechanisms to fund various infrastructure projects. JBIC sees opportunities to channel credit as it sees the Indonesian government spurring infrastructure development but the availability of funds is relatively limited.
CREDIT SYNDICATION
Throughout 2017, Japanese financial institutions are aggressively engaged in syndicated loans for projects in Indonesia. Recorded, over the past year there were 82 credit syndicated credit transactions. Referring to Bloomberg data, syndicated credit value throughout 2017 touched US $ 29.45 billion, up 8.82% compared to the realization in 2016 which reached US $ 27.06 billion. The increase was supported by domestic banking groups and major financial services institutions from Japan. In the data also known, the top sequence lead arranger leads PT Bank Negara Indonesia (Persero) Tbk. followed by PT Bank Mandiri (Persero) Tbk.
Meanwhile, Japan's banking services agency began poking and controlling the third position to fifth. One Japanese bank, Mitsubishi UFJ Financial Group Inc. (MUFG), for example, provided a syndicate worth US $ 2.52 billion. This value is almost submitted to a syndicated loan of Bank Mandiri of US $ 2.591 billion. Meanwhile, Economist of PT Bank Central Asia Tbk. David Sumual said the increase in contribution from Japanese financial institutions was partly due to an increase in infrastructure projects involving Japan. MRT one of them, as well as tolls outside Java and power plant projects and usually fund partly through Japanese banks, So that's what makes big credit syndication. But syndicated loans of major banks also increased, such as BCA and Mandiri