The National Development Planning Ministry (Bappenas) is preparing the debt plan to finance the Patimban Deep-Sea Port project. This debt will be included in the government’s external loan plan until 2019.
Deputy for Facilities and Infrastructure at Bappenas Wismana Adi Suryabrata said he had capped the debt for financing this project at just US$2.2 billion, or some IDR 28 trillion.
“So that is a rough estimate (of the loan) that would be approved,” he said at the Bappenas building in Jakarta, Thursday (28/7) night.
The Ministry of Transport will use this debt cap a reference to do the preliminary survey because this figure is lower than the ministry’s estimate of IDR 35 trillion-40 trillion for the project. (Read: Jokowi Reviews IDR 40 Trillion Japanese Funding for Patimban Seaport Development)
Deputy for Development Funding at Bappenas Kennedy Simanjutak said this debt cap might change. He still has to discuss it with the new head of Bappenas, former Finance Minister Bambang Brodjonegoro.
The funding for the development of the project, which replaced the defunct Cilamaya Seaport project, has not been included in the government’s list of planned external loans (DRPLN) or 2015 - 2019. This means the government still needs to revise the document, which is more commonly known as the Blue Book.
Previously, Bappenas announced that the revision of the Blue Book was nearly complete and would be published soon. However, due to the President’s reshuffle of the cabinet on Wednesday (27/7), Bappenas is unable to confirm when the revision will be published.
“If we talk about when (the Blue Book will be revised), we need to discuss it with the minister first,” said Kennedy. (Read: Jonan Suggests Government Discuss Japanese Debt for Patimban Seaport)
After the revised Blue Book is published, the government can then move forward with the project by conducting a feasibility study. The next step in the process will be creating a detailed engineering design (DED).
The Transport Ministry aims to sign the agreement for this project with the Japanese this year so construction can commence next year and be completed by 2019.
The Patimban Seaport would initially have the capacity for containers of to up to 1.5 million TEUs. This capacity will increase to 7.5 million TEUs in 2037.
As for funding, Japan also expressed an interest in investing in this project. The country is ready to team up under a Special Terms for Economic Partnership (STEP) scheme, offering a loan interest rate of 0.1 percent.