Kutai gets US$210m German loan

SAMARINDA, East Kalimantan: PT Tunggang Parangan, a company controlled by the Kutai Kertanegara regency administration, has received a US$210 million loan from German-based construction company Brohult Bijkerk Ltd., an official said.

The loan will be used to finance the construction of an airport in the regency, said Dahri Yasin, the president director of construction and transportation company PT Tunggang Parangan.

He said that the loan had to be repaid in 15 years.

Syaukani, the regent of Kutai Kertanegara, said the regency was in dire need of an airport.

Currently, the nearest airport is located in Balikpapan, about 119 kilometers from Kutai. The trip from Kutai to Balikpapan takes about 2.5 hours by land transportation.

"The Sepinggan Airport in Balikpapan is located quite far away from Kutai. It will save money and time if an airport is constructed here," said Syaukani.

Work on the new airport is expected to begin immediately. -- JP