BRI Facilitates Financing Trans Papua Road

JAKARTA - PT Bank Rakyat Indonesia (Persero) Tbk is involved in financing the syndicated Government and Business Entity Cooperation Project (KPBU) for the construction of the Trans Papua Road Jayapura-Wamena Segment Mamberamo-Elelim in the Papua Mountains Province, BRI contributes to providing structured and sustainable financing solutions.

For information, this project has a total investment value of IDR 3.3 trillion with a concession period of 15 years, covering two years of construction period and 13 years of service period.

The construction of a 50.14 kilometer road is intended to be the main route for logistics transportation that connects Jayapura and Wamena.

This infrastructure is expected to be able to strengthen connectivity between regions, facilitate the flow of goods distribution, and encourage economic improvement and community welfare in Papua.

This project will be implemented by PT Hutama Mambelim Trans Papua (PT HMTP), which was formed through a consortium between PT Hutama Karya (Persero) and PT Hutama Karya Infrastruktur.

The project uses the Availability Payment (AP) scheme, in which the government provides periodic payments based on agreed quality of service. This scheme is supported by payment guarantees from PT Penjaminan Infrastruktur Indonesia (PII).

PT HMTP officially signed the Sindication Financing Agreement for the Government Cooperation Project with the Trans Papua Business Entity (KPBU).

In this financing, PT Bank Rakyat Indonesia (Persero) Tbk (BRI) and PT Sarana Multi Infrastruktur (Persero) (SMI) acted as Coordinating Banks, while PT Bank Negara Indonesia (Persero) Tbk (BNI) acted as part of the Joint Mandate Lead Arrangers and Bookrunners (JMLABs).

This syndicated financing structure involves five financial institutions, namely BRI, SMI, BNI, PT Bank Syariah Indonesia Tbk (BSI), and the Papua Regional Development Bank (BPD Papua).

The total syndicated value reached IDR 2.6 trillion, consisting of financing with a conventional scheme worth IDR 2.36 trillion and financing with a sharia scheme of IDR 300 billion.

BRI Director of Wholesale & Institution Business Agus Noorsanto stated that BRI's involvement in this project is clear evidence of the company's contribution in supporting national strategic infrastructure development.

The high interest of financial institutions in financing this project is reflected in the oversubscription level of 1.27 times, which shows the great trust of financial institutions in the prospects for the Trans Papua KPBU project. As one of the Coordinating Banks, BRI is committed to continuing to encourage synergy between the Implementing Business Entity (BUP), financial institutions, PII, and the Government. This 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.