Citra toll road companies get $650 million in loans

JAKARTA (JP): Two toll road development firms under the politically-well-connected Citra Group have got syndicated loans totaling Rp 1.53 trillion (US$650 million) from domestic banks to build highway projects in the city.

The chairwoman of the Citra Group, Siti Hardiyanti Rukmana, who is President Soeharto's eldest daughter, and executives of the arranging banks signed the loan documents for PT Citra Bhakti Margatama Persada and PT Citra Mataram Satriamarga Persada here on Wednesday.

Of the total loans, Citra Bhakti obtained Rp 929.9 billion from 26 local banks. This was co-arranged by state-owned Bank Dagang Negara and publicly-listed Bank PDFCI, to finance the construction of a 19.2-kilometer toll road linking Cikunir in Bekasi, West Java, and Tanjung Priok in North Jakarta.

R.C. Eko Santoso Budianto, a director of Bank PDFCI, said recently that the syndicated loans involved only local banks because foreign banks were not interested in financing toll road projects, whose revenues are denominated in rupiah.

Meanwhile, Citra Mataram got a Rp 602 billion syndicated loan from 20 local banks, co-arranged by Bank Danamon, Bank Internasional Indonesian, Bank Niaga and Bank Dagang Nasional Indonesia -- all privately owned -- to finance a 11.2-km highway linking Pondok Pinang in South Jakarta and Kebon Jeruk in West Jakarta.

Both toll road projects are part of the 60-km Jakarta outer ring toll road.

The construction of both toll roads, which is expected to finish in 1999, commenced long before the syndicated loans were signed. (rid)