Avoiding US Dollar Risk, Jababeka (KIJA) Secures Loan from Bank Mandiri for Refinancing

JAKARTA - PT Kawasan Industri Jababeka Tbk (KIJA) has obtained a loan facility from PT Bank Mandiri (Persero) Tbk (BMRI). This was agreed upon through the signing of a new long-term loan facility on Wednesday (13/5/2026). The new financing facility has a tenor of 15 years and is provided in rupiah with a floating interest rate of 7 per cent per year. Deputy Director of KIJA, Budianto Liman, stated that the funds will be used for refinancing senior notes worth US$185.8 million or the equivalent of Rp3.26 trillion, which are due in December 2027, as well as an additional term loan facility of Rp70 billion to support general corporate needs. According to him, the transaction represents the company’s liability management strategy, strengthening its long-term financial profile through the extension of debt maturities and improved liquidity visibility. “We appreciate the support and trust provided by Bank Mandiri through this long-term financing facility,” said Budianto Liman in a press statement quoted from the IDX disclosure on Thursday night (14/5/2026). In connection with the financing facility, KIJA provides collateral in the form of several of its assets and those of its subsidiaries, with a total collateral value meeting a coverage ratio of 120 per cent of the loan value. “This transaction significantly extends the company’s debt maturity profile, strengthens its liquidity position, and further enhances the company’s financial flexibility. Amid increasing volatility in the international debt market, we believe this financing facility is an appropriate and prudent funding solution for the company,” he explained. Furthermore, KIJA continues to maintain a diversified long-term funding strategy and views banking instruments as well as the debt capital market as important sources of funding. The main benefits of this transaction include extending the average debt maturity profile through the new 15-year tenor, refinancing senior notes before their maturity in December 2027, strengthening the company’s liquidity position and financial flexibility, aligning the financing structure with the reporting currency to reduce exchange rate volatility risk, and reducing refinancing risk amid high market volatility conditions.