PT Rukun Raharja Tbk (RAJA) obtained a loan facility from Bank Mandiri of a maximum amount of US$108.73 million or equivalent to Rp1.57 trillion (BI exchange rate = Rp14,481 per US dollar).

"This loan matures on December 23, 2030," said Director of RAJA, M. Oka Lesmana Firdauzi, in the IDX disclosure, Wednesday (31/3).

He said that RAJA would use this credit facility to finance the construction and operation of the oil pipeline for the Balam-Bangko-Dumai corridor and the Minar-Duri-Dumai corridor with a length of more than 352 kilometers.

This pipeline consists of 12 segment pipelines and three-segment stations, including supporting facilities and implementing oil transportation activities from the Rokan working area based on the oil transportation agreement through pipelines signed by PT Pertamina Hulu Rokan and PT Pertamina Gas.

The value of the Rokan pipeline project is estimated at US$300 million. Of this amount, the company's share is worth US$75 million.

Another use of funds is to finance a project to provide temporary LPG supply point services at the Rembang Port location by PT Heksa Energi Mitraniaga, which PT signed by PT Pertamina Patra Niaga and PT Heksa Energi Mitraniaga.

Also, the company will use this credit facility to pay off loans from PT Bank Negara Indonesia (Persero) Tbk amounting to US$40 million and PT Bank HSBC Indonesia.

On another occasion, the President Director of RAJA, Djauhar Maulidi, said that the company would complete the first phase of the Rokan pipeline project in the third quarter of 2021. The company expects the project to contribute to its revenue in the financial statements for the 2020 financial year.