"We have a plan to issue IDR 6.5 trillion worth of bonds. [The proceeds] will be used to finance the Trans Sumatra Toll Project."
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Arief Kamaludin|KATADATA

Sarana Multi Infrastruktur (SMI) has released additional funds of IDR 1.16 trillion for Hutama Karya to finance work on the 8.9 km Bakauheni-Terbanggi Besar toll project.

SMI President Director Emma Sri Martini said the funds were disbursed to accelerate the construction of this key project. The loan will allow Hutama Karya to construct the toll road from the Bakauheni port entry gate to Bakauheni subdistrict.

"We will continue to provide innovative solutions like this one," Emma said last Friday. (Read: Hutama KaryaSeeks Loan for Sumatera Toll from Chinese Bank).

Meanwhile, Hutama KaryaPresident Director I GustiNgurah Putra hopes that the loan can strengthen ties between the two state companies, especially since the loan is to finance a strategic project located outside Java. "Hopefully it will have a positive impact," he said.

To raise additional funds for the project, Hutama Karya will also issue bonds. This plan follows the introduction of the Tax Amnesty Law last Monday.

Hutama Karya believes that the company can absorb repatriated funds from the tax amnesty. "We have a plan to issue IDR 6.5 trillion worth of bonds. [The proceeds] will be used to finance the Trans Sumatera Toll project," Corporate Secretary Sigit Rusanto said. (Read: Hutama Karya to Use Repatriated Funds for Trans Sumatera Project).

On a separate occasion, Minister of Public Works and Public Housing Basuki Hadimuljono said that out of the IDR 16 trillion allocated to the Indonesia Asset Management Agency (LMAN) to acquire land , IDR 4 trillion will be allotted to toll projects, water source projects, and housing projects.

"Most of it will be used for toll (road) projects," Basuki said. (Read: Parts of Trans Sumatera Toll Not Used for Eid Exodus).