Suryacipta Swadaya to secure $30m loan

JAKARTA (JP): Industrial estate developer PT Suryacipta Swadaya, a subsidiary of PT Surya Semesta Internusa, is set to secure a US$30 million loan from the London-based Commonwealth Development Corporation (CDC).

The company said over the weekend that the six-year loan would be signed here tomorrow.

The loan will be used to finance the construction of the second phase of its industrial park in Karawang, West Java.

It indicated the British government's confidence in the Indonesian economy despite the economic crisis, which has blighted the country since early July, the company said.

Such a commitment also indicated the CDC's confidence in the future of real estate development in Indonesia, it added.

The CDC, established by the British government in 1948 to finance long-term projects and to perform private placements, has operated in Indonesia since 1971 and has so far provided around S$300 million in loans to Indonesian companies.

In the last 12 months, the institution has agreed to finance $122 million worth of projects.

Suryacipta Swadayap's industrial estate in Teluk Jambe, Karawang, called Kota Industri Suryacipta (Suryacipta Industrial City) is an integrated industrial estate. It comprises an industrial park development, ready-to-use plants, a commercial complex, clean water and waste water proccessing centers, telecommunication and electricity facilities, dormitories and low-cost housing.

In April 1995, the company obtained a Rp 60 billion (then $26,000) loan from a syndication of local banks to finance the first phase of the industrial estate construction, which covers about 500 hectares.

The company repaid the debt in March this year, or two years before it matured.

The second phase, will develop around 900 further hectares.

Sixteen foreign and local companies have established their factories on the estate. These include ceramic maker PT Keramika Indonesia Asosiasi, electronic goods producer PT JVC Electronic Indonesia, battery maker PT GS Battery Inc, and tiremaker PT Bridgestone Tire Indonesia. (08)