PT KAI Finance Director Didiek Hartantyo (right) and Bank Mandiri Corporate Banking Senior Vice President Alexandra Askandar (left) shake hands after the signing of a Rp 1.2 trillion loan MoU in Bank Mandiri's office in Jakarta on Tuesday (JP/Anton Hermansyah)

State-owned railway operator PT Kereta Api Indonesia (KAI) received a Rp 1.2 trillion (US $89.27 million) loan with 10 years' tenor from state-owned lender Bank Mandiri .

KAI Finance Director Didiek Hartantyo said the money would be used for coal freight train facilities in South Sumatra. The company would add more stations and reinforce the railway in the existing routes, Tanjung Enim-Tarakan, Tanjung Enim-Kertapati and Lahat-Kertapati.

"We will serve more companies in South Sumatra. There are around 10 coal miners and we already served four of them including Bukit Asam," he said after the MoU signing in Jakarta on Tuesday.

Currently the company carried 80 percent of state-owned miner Bukit Asam's production, he added. Miners started to increase their production again as coal prices soared, looking for an efficient transportation mode.

Mandiri Corporate Banking Senior Vice President Alexandra Askandar said the loan was a syndicated instrument and that Bank Mandiri could “sell” some portion of the loan to other banks.

"We will offer it to other banks next year. If they are interested they can pay us for the portion," she said. (evi)

Source:
courtesy of THE JAKARTA POST

by Anton Hermansyah Anton Hermansyah

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