Loan for Development and Operation of Serviced Apartments in Indonesia
Supporting Overseas Expansion of Infrastructure Business by Japanese Company through Local Currency Denominated Loan under Growth Investment Facility
- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on November 12 a loan agreement amounting to up to IDR202,500 million (JBIC portion) with PT．SDI Properties Indonesia (SDIP), an Indonesian company established by Sojitz Corporation (Sojitz) and Daiwa House Industry Co., Ltd. (Daiwa House Industry). The loan is extended under JBIC’s Growth Investment Facility*1
and is co-financed with MUFG Bank, Ltd., bringing the total co-financing amount to IDR337,500 million.
This loan is intended to provide the funds necessary for the development and operation of serviced apartments by SDIP in the Deltamas district (Deltamas) of Bekasi Regency in the province of West Java, the Republic of Indonesia (Indonesia).
Since 1996, Sojitz has been conducting large-scale comprehensive urban infrastructure development business in Deltamas with Sinar Mas Group, a local leading conglomerate. This project, which is developed as part of such development business, provides serviced apartments that meet Japanese standards in an area adjacent to the Japanese school that opened in April 2019. Sojitz and Daiwa House Industry aim to increase their know-how and profit in the overseas real estate sector through SDIP. The loan supports the overseas business expansion of both companies and the project will also benefit Japanese companies advancing their business in Indonesia. It therefore contributes to maintaining and improving the international competitiveness of Japanese industry.
As Japan’s policy-based financial institution, JBIC will continue to support the overseas business expansion of Japanese companies into growing markets such as Indonesia by drawing on its various financial facilities and schemes, including local currency loans, and performing its risk-assuming function.