Pertamina gets loan for gasoline projects<\/p>\n
A'an Suryana, The Jakarta Post, Jakarta<\/p>\n
A group of financial institutions signed here on Tuesday an
\nagreement with state oil and gas company Pertamina to provide
\nloans for the company's US$275 million unleaded gasoline projects
\nin Balongan, West Java, and Cilacap, Central Java.<\/p>\n
The lenders will provide a $200 million loan, while Pertamina
\nwill cover the remaining $75 million. The Balongan and Cilacap
\nrefineries are valued at $191 million and $84 million
\nrespectively, according to Pertamina.<\/p>\n
The loan, which carries an annual interest rate of 275 basis
\npoints above the London Interbank Offered Rate during its 3.5-
\nyear maturity period, was arranged by Sumitomo Mitsui Financial
\nGroup Inc.<\/p>\n
The lenders include Japan Bank for International Cooperation,
\nCredit Lyonnais S.A., ING Bank N.V., UFJ Bank and Bank of Tokyo-
\nMitsubishi.<\/p>\n
"The signing of the agreement marks an important step in the
\ndevelopment of the unleaded gasoline facilities, which are
\nexpected to start operation by 2005," said Pertamina president
\nBaihaki Hakim.<\/p>\n
Pertamina has appointed PT Rekayasa Industri and Japan's Toyo
\nEngineering Corp. to modify the Balongan refinery and is in the
\nmiddle of selecting a contractor for the Cilacap project.<\/p>\n
The development of both plants is aimed at supporting the
\ngovernment's Blue Sky program, which is meant to reduce air
\npollution caused by leaded gasoline.<\/p>\n
Pertamina started selling unleaded gasoline in July 2001 in
\nseveral areas in the country, including Jakarta, Cirebon in West
\nJava, and Bali. But Pertamina either imports the gasoline or
\nproduces it here with some imported raw materials.<\/p>\n
By developing the two unleaded gasoline plants, Pertamina
\nexpects to reduce costs for the supply of such gasoline.<\/p>\n
"It is expected that all gasoline in Indonesia will be lead-
\nfree by the middle of 2006," Baihaki said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-gets-loan-for-gasoline-projects-1447893297",
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"sponsor": "Okusi Associates",
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