Indocement to sign loan

Indocement to sign loan

TOKYO (Reuters): The Export-Import Bank of Japan and four Japanese commercial banks plan to sign a loan contract worth 15 billion yen with Indonesia's largest cement maker Indocement Tunggal Prakarsa, a spokesman for Export-Import Bank said yesterday.

About 60 percent of the total loan will be made by Export- Import Bank and the rest by Fuji Bank Ltd, Yasuda Trust & Banking Co Ltd, Sumitomo Trust & Banking and Mitsubishi Trust and Banking Corp, he said.

The contract signing is scheduled for November 21 in Jakarta, he said.

Indocement will use the loan to import equipment from Japan for a new cement plant to be built in a suburb of Jakarta, the spokesman said.

The plant will have annual production capacity of about 2.5 million tons.

Japanese firms Marubeni Corp and Kawasaki Heavy Industries will provide equipment for the plant. The loan will be guaranteed by Marubeni, the spokesman said.