REPUBLIKA.CO.ID, JAKARTA -- State owned port operator PT Pelabuhan Indonesia (Pelindo) III said it will issue global bonds to reach US$1 billion in value by phases until 2030.

The bond funds would be used to complete the construction of the Teluk Lamong terminal until its fourth phase until 2030.

"This year there are still fund remaining from the bond issued earlier. In the coming years we will need addition of US$500 million to US$1 billion," Pelindo III's President Director Djarwo Surjanto said after the signing of a concession agreement for the management of the Teluk Lamong Multipurpose Terminal at the Transport Ministry here on Tuesday.

Djarwo said the bond would be issued by phases until the 4th phase under the scheme of corporate loan not project loan.

In September 2014, Pelindo III already issued bond valued at US$500 million - 40 percent sold in the US market, 30 percent in the European market, and 30 percent in the Asian market with an interest rate of 4.87 percent a year.

"Until the fourth phase we will issue more bonds . Our involvement in the global market is a test to see how much the global market has confidence in Indonesia," he said, adding," it turned out the confidence is quite high over subscribed 16 times."

The first phase of investment in Teluk Lamong Terminal already carried out from 2012 to 2014 valued at Rp3.84 trillion.

Work in the first phase included construction of an international container quay 500 x 50 square meters, domestic container quay 450x30 square meters, piling up square 23.86 hectares,connecting bridge 1,500x20 square meters and two units of international ship to shore (STS) crane , 3 units of domestic STS crane and 10 units of automated stacking crane (ASC).

The second phase to follow in 2014 to 2016 will cost Rp7 trillion including construction of dry bulk quay (2,550x30 square meters , piling up square , 15 units of power plant, 2 units of International STS crane , three units of domestic STS crane, 10 automated stacking crane and reclamation.

In the third phase from 2021-2023 investment will reach Rp5.7 trillion and in the last phase, investment will reach Rp6.8 trillion, bringing the total investment in the Teluk Lamong Multipurpose Terminal project to Rp23.4 trillion.

Djarwo said part of the bond funds would also be used to finance the expansion of the Tanjung Mas port of Banjarmasin, port of Dumai, port of Lembar, all to support the government program of sea toll road, so as not to relay entirely on Surabaya's Tanjung Perak port.

"All are under construction. We add more equipment and facilities . We also will build new ports in new areas for which are now in the process of licensing," he said.

All facilities would be computerized and modernized to improve efficiency and prevent malfeasance, he said.

"There is no more haggling as all would be handled with electronic devices. The electronic devices would also show who perform well and who are under performing. ," katanya.

On Tuesday, Pelindo III received the concessional right for the operation of the Teluk Lamong Multipurpose Terminal from the transport ministry or the government for 72 years under which Pelindo III will pay 2.5 percent of the gross income as non tax state revenue o the government.

Djarwo predicted that with the 72-year concession , the break even points could be reached after 60 years.

"We will build by phases with efficiency that we would reach the target," he said.

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