ICBC Indonesia contributed IDR 400 billion to IDR 6.98 trillion syndicated loan for Balikpapan-Samarinda Toll Road (Linked to Record ID#61324)

ICBC contributes to IDR 6.98 trillion syndicated loan for Balikpapan-Samarinda Toll Road in Indonesia 2018 On December 21, 2018, Bank ICBC Indonesia provided IDR 400 billion in a syndicated loan to PT Jasamarga Balikpapan Samarinda (JBS) for the construction of the Balikpapan-Samarinda Toll Road Project in East Kalimantan.

Based on the Deed of Credit Agreement No. 88 and No. 89 dated December 21, 2018, of Notary Ashoya Ratam, S.H.M.Kn, JBS, a subsidiary, entered into a syndication loan agreement with 14 banks.

The maximum credit facility given is Rp6.98 trillion and the loan facility period is 15-years from the date of signing the agreement.

The loan bears interest at an average of 3-month time deposit rate published by syndicated banks plus a margin of 4.25% during construction time and 4.00% from the date of toll operation period.

The banks participating in the syndicated loan include PT Bank Mandiri (Persero) Tbk, PT Bank Negara Indonesia (Persero) Tbk (“BNI”), PT Bank Rakyat Indonesia (Persero) Tbk (“BRI”), PT Sarana Multi Infrastruktur (“SMI”), PT Bank ICBC Indonesia (“ICBC”), PT Bank Pembangunan Daerah Jawa Timur Tbk, PT Bank Pembangunan Dareah Papua, PT Bank Pembangunan Daerah Kalimantan Selatan, PT Lembaga Pembiayaan Ekspor Indonesia (‘LPEI”), PT Bank Mega Tbk, PT Bank Syariah Mandiri, PT Bank Negara Indonesia Syariah, PT Bank Muamalat Indonesia Tbk, and PT Bank Pembangunan Daerah Jawa Barat Syariah.

The toll road has a length of 90.22km and will connect the cities of Balikpapan and Samarinda in the East Kalimantan province.

The project is developed by Jasa Marga Balikpapan Samarinda, a consortium consisting of Jasa Marga (55%), Wijaya Karya (15%), Pembangunan Perumahan (15%), and Bangun Tjipta Sarana (15%). The construction was started on 12 January 2011 but halted in 2012 because of a financial shortage.

In November 2015, President Joko Widodo relaunched the construction of the toll road ("Balikpapan–Samarinda Toll Road"). China Eximbank provided an export buyer's credit loan in 2015 for this project (captured via Record ID#61324). The Balikpapan-Samarinda toll road has a total length of 97.27 Km and is divided into five sections.

Section 1: starts from KM 13 to Samboja along 21.95 kilometers (72,014 ft); Section 2: from Samboja to Muara Jawa along 30.05 kilometers (98,589 ft), Section 3: from Muara Jawa to Palaran along 18.2 kilometers (59,711 ft), Section 4: from Palaran to Samarinda is 17.15 kilometers (56,266 ft) long, Section 5: from Km 13 Balikpapan to Manggar is 11.09 kilometers (36,385 ft) long.

Sections 2, 3, and 4 were completed on December 17, 2019, while Sections 1 and 5 were expected to be finished in 2020 ("Balikpapan-Samarinda toll road inauguration: Constructing the new capital city gradually").

On August 24, 2021, President Joko Widodo inaugurated Section 1 and Section 5 at the Manggar Toll Gate (GT) in Balikpapan, East Kalimantan. Section 5 received the final engineering certificate in 2023.

The surrounding vegetation of construction for the Balikpapan-Samarinda road has accompanied a loss of vegetation, much like numerous other development projects in Indonesia including the Jakarta-Bandung Railway, power plants, and industrial complexes.

The toll road also poses a significant health risk to indigenous Dayak groups whose communities overlap with the project's location, and is also concerning for its proximity to primary forests at certain points.