KUALA LUMPUR: PT Orient Technology Indonesia, a 90% Malaysian-owned company, plans to raise Islamic bond of US$120mil soon to finance the development of the International Feeder Port of Tanjung Api-Api in southern Sumatra, Indonesia.
Work on the port, involving US$280mil in cost, is expected to start by end 2005 and be completed in two years.
“The project is big and our intention is to issue the bond under the Sukuk Musyarakah programme to part-finance the project while the balance cost of the project will be sourced from our internal funds as well as borrowings,” PT Orient president director Mohd Sopiyan Rashdi said.
He said this after the signing ceremony of the surrender land site regional regulation (Perda) between PT Orient and province of South Sumatra and Regency of Banyuasin Authorities in Kuala Lumpur yesterday.
PT Orient has obtained approvals from the Indonesian authorities to develop the South Sumatra (SUMSEL) Eastern Corridor Development In The Third Millennium or SECDe.
The SECDe project comprises the development of the international feeder port of Tanjung Api-Api, Banyuasin Industrial Park, biotechnology industry, global halal hub, eco-tourism, business centres, housing complexes and township, and education village at the Regency of Banyuasin.
The whole project, to be developed in four phases, would take over 20 years to be completed and is expected to attract an investment of US$7.0bil.
Mohd Sopian said the whole SECDe project would be developed in consortium with six other Malaysian-owned companies.
There were PT Orient and Origin Technology (M) Sdn Bhd, Agresif Padu Sdn Bhd, Reka Rancang Sdn Bhd, MDS Consultant, Integra Bhd and UEM Group.
Mohd Sopiyan said the Tanjung Api-Api feeder port was deemed to be a catalyst for the development of several Indonesian provinces.
He said the port would support import and export activities for four provinces, namely South Sumatra, Jambi, Lampung and Bengkulu.
“The port is anticipated to reduce the burden of Tanjung Priok, the main port of Indonesia in the southern region of Sumatra Island,” he said.
Using the bridge concept, the port would have terminals for containers, general cargo, crude palm oil and coal, he said.
It would also have its own infrastructure facilities for storage and logistics, besides a marine side.
On the outlook of PT Orient, Mohd Sopiyan said the company was aiming for a listing on the Dubai Stock Exchange.
He said the company also planned to penetrate the Dubai market as there was a big potential there.
PT Orient, established in 2004, is principally involved in the marine port and industrial/business zone project development, technology dissemination, business development and professional consulting and human resources development. – Bernama