PT Adhi Karya (Persero) Tbk unit, PT JAA, conducts a financial close of the 29.87 kilometers-length Sumatra East Road (Jalintim) construction project. The road, which is divided into six sections, is located in Palembang.

Jalintim Sumatera in Palembang has a concession period of 15 years, of which a three-year construction period starts from 2021 to 2023, and a 12 year payment period from the government from 2024-2035.

"The payment scheme from the Ministry of Work to PT JAA uses the availability payment (AP) scheme, which is the first AP in Indonesia," said ADHI's Corporate Secretary, Parwanto Noegroho, in an official statement, Wednesday (24/2).

The availability payment (AP) scheme is a direct payment from the government to the PPP BUP in terms of infrastructure procurement, a long-term cooperation contract, and is not tied to service revenues.

To harmonize this Jalintim Palembang financing pattern, ADHI collaborated with Bank Syariah Indonesia (BSI) to produce the Ijarah Muntahiya Bitamlik (IMBT) scheme. He considered the IMBT scheme to ease ADHI's leverage burden more than conventional financing patterns.

"Taking into account ADHI's current equity posture, ADHI will continue to seek opportunities for financing schemes that do not burden ADHI's leverage, by cooperating well with conventional banking, Islamic banking, and other related parties," he said.