Gresik withdraws US$73.5m loan, Indonesia

Gresik withdraws US$73.5m loan, Indonesia
Published: 29 March 2011

Indonesian cement company PT Semen Gresik has withdrawn IDR660bn (US$73.5m) from a syndicated loan of IDR3.55trn loan to finance construction of new cement factories in Tuban, East Java, and Tonasa in South Sulawesi.

Work is continuing in progress so the loan disbursement is needed, the company’s spokesman Agung Wiharto told the newspaper Investor Daily.

The loan is provided by a bank syndicate including Bank Mandiri, Bank Rakyat Indonesia, Bank Jatim and Bank Sulawesi Selatan, Wiharto said.

The new Tuban and Tonasa production unit will have a production capacity of 2.5 Mt each to be built with a total investment of US$700m including US$114m for a power plant.

Earlier, Semen Gresik’s president Dwi Sutjipto said construction of the Tonasa factory was already 79 per cent completed and the one in Tuban 78.4 per cent and the two factories are to be operational toward the end of this year.