Bank Jateng Syariah Performs Financing Syndication with PT Indah Karya (Persero)

As part of the national economy driving force, Islamic Banks are committed to maximally contribute to national development efforts. Bank Jateng Syariah, which is entrusted as an arranger for the Sharia syndication scheme, is also committed to be able to finance the construction of Plywood Plants, Wood Pellets, and Wind Turbines, at PT Indah Karya (Persero). Bank Jateng’s Director of Retail Business and Sharia Business Units, Hanawijaya said, the syndication of Islamic finance will involve three Bank Syariah Business Unit (UUS) in Indonesia that show solidarity in relations between Bank BPD Sharia.

The three banks, namely, Bank Jateng Syariah Business Unit, Bank Syariah of Sumsel Babel Business Unit, and Bank Syariah of Sulselbar Business Unit, each of which provides participants. “Distribution of participants, namely PT BPD Jateng UUS for 86 billion rupiahs, PT BPD Sumsel Babel USS for 21.5 billion rupiahs. While PT BPD Sulselbar USS amounted to 17.5 billion rupiahs, therefore the total amounted to 125 billion rupiahs, “explained Hanawijaya, at on Monday (05/13/2019).

The syndicated financing aims to build Plywood expansion from community forests. In addition, helping farmers or those who have Sengon tree forests, processed into Plywood and exported to the several countries such as Japan and Europe. The chosen area was Bondowoso, since it’s included an area with a low income per capita, the presence of this factory could have an impact on the surrounding community welfare, since the use of Sengon wood raw materials in the area was quite large.

Hanawijaya said, when the program was successful, he hoped to move in Central Java. The possibility of making cooperation with the local companies in Central Java who want to utilize the technology and they already have markets.  “Bank Jateng Syariah funds 48 billion rupiahs specifically for Wind Turbines, since there must be programs Bank Jateng collaborates with the Ministry of Forestry’s public service agency to back up the forest-based companies,” he explained.

With this cooperation, he hopes there will be one more project in Central Java that is similar to this, namely timber utilizing community. “Once again we convey the maximum commitment of Bank Jateng Syariah and all sharia banking industry players, in order to support the concrete development of PT Indah Karya’s operations will create a new center for the economic growth of the country,” he said.

President Director of PT Indah Karya (Persero), Nel Adianto added, his party expressed appreciation and gratitude for the trust given. In addition, with the presence of PT Indah Karya (Persero) project can absorb approximately two thousand employment.