Bank Mandiri disburses Rp1.2 trillion for double-track railway

State-owned Bank Mandiri has disbursed Rp1.2 trillion to state-owned railway firm PT KAI for the development of a double-track railway in South Sumatra.

Senior Executive Vice President of Bank Mandiri Alexandra Askandar in the signing of the agreement with KAI on Tuesday said the special transaction loan has a term of 10 years.

“The development of a double-track railway in South Sumatra will accelerate the delivery of coal to the coal-fired power plant in Suralaya,” he noted.

The double-track railway line links the mining area of Bukit Asam in Tanjungenim Baru to Tarahan, Lampung.

The special loan transaction agreement was signed by Askandar and KAI Finance Director Didiek Hartantyo.

Askandar said the disbursement of the loan was a form of support for the development of strategic infrastructure projects nationwide, one of which is the transport sector.

By October 2016, Bank Mandiri had provided Rp37.1 trillion to the transport sector. This is the largest financial commitment in the infrastructure segment which totalled Rp96.9 trillion, or an increase of 53 percent on an annual basis.

Besides the railway sector, Mandiri has also provided financing for power plants amounting to Rp32.1 trillion.

Infrastructure financing is included in the corporate loan segment. Mandiri disbursed corporate loans until the third quarter of 2016, amounting to Rp212.4 trillion, up 14.3 percent year on year.