Active Mixed AidData Chinese Aid

China Eximbank provides $259 million preferential buyer’s credit for Section 3 of the Serang-Panimbang Toll Road Project

$259M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Indonesia
Country	Indonesia
Start Date	Jul 01, 2022
End Date	Jun 26, 2028
Duration	2,187 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`61435`

Grant Description

China Eximbank provides $259 million preferential buyer’s credit for Section 3 of the Serang-Panimbang Toll Road Project In July 2022, China Eximbank and the Government of Indonesia signed a $259 million preferential buyer’s credit (PBC) agreement for Section 3 of the Serang-Panimbang Toll Road Project.

📋 Loan / Grant Terms

📅 Maturity13.2 years

⏳ Grace Period5.1 years

💹 Interest Rate2.9%

The borrower is expected to use the proceeds of the loan to partially finance a commercial contract with China Road and Bridge Corporation (CRBC).

The purpose of the project was to construct a 33 km section (‘Section 3’) of the Serang-Panimbang Toll Road that runs from Cileles to Panimbang.

Upon completion, the toll road is expected to shorten travel time from Jakarta to the SEZ Tanjung Lesung from 5 hours to 2 hours, and boost the economic development of Banten Province.

The full toll road includes the following sections: Serang to Rangkasbitung (Section 1, 26.5 km), Rangkasbitung to Cileles (Section 2, 24.17 km), and Cileles to Panimbang (Section 3, 33 km). The first section became operational in December 2021. CRBC is the EPC contractor responsible for project implementation.

However, some sources indicate that a consortium of PT Sino Road and Bridge, PT Adhi Karya, and PT Wijaya Karya were responsible for project implementation.

Reportedly, construction on Section 3 was originally intended to begin in August 2021 and reach completion within 24 months (August 2023). However, the project’s groundbreaking ceremony ultimately took place on August 8, 2022. Project completion is now expected in 2024.

📋 Staff Comments

Some sources (see https://www.pwc.com/id/en/media-centre/infrastructure-news/december-2018/serang-_-panimbang-toll-road--govt-waiting-for-chinas-loan.html) indicate the sections were to be divided as follows: Serang to Rangkas Bitung (26.50 km), Rangkas Bitung to Bojong (33 km), and Bojong to Panimbang (24.40 km). However, the majority of sources indicate the sections are as follows: Serang to Rangkasbitung (26.5 km), Rangkasbitung to Cileles (24.17 km), and Cileles to Panimbang (33 km).
Some sources (see, for example, http://sispro.co.id/id/news/pembangunan-tol-serang-panimbang-seksi-iii-mendapat-pinjaman-4-5-triliun-dari-china-101965.htm) indicate that PT Sino Road and Bridge, PT Adhi Karya, and PT Wijaya Karya are the project contractors. Chinese official sources which were (a) published at later dates and (a) are more official only list CRBC, however. As such, CRBC has been coded as the only implementing agency, but this issue warrants further investigation.
The Chinese project title is 西冷—巴宁邦收费公路第三标段项目. The Indonesian project title is Tol Serang Panimbang Seksi III.
According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Indonesia was 13.2-years in 2022. AidData estimates the maturity of the China Eximbank loan that supported Section 3 of the Serang-Panimbang Toll Road Project by using this figure. See https://www.dropbox.com/scl/fi/stbsondlzk05t09z7xf7z/Indonesia-s-official-sector-PRC-borrowings-and-borrowing-terms-IDS-December-2024.xlsx?rlkey=9ndf1pbfb7b5le5j55po2i69x&dl=0 5. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Indonesia was 5.1-years in 2022. AidData estimates the grace period of the China Eximbank loan that supported Section 3 of the Serang-Panimbang Toll Road Project by using this figure. See https://www.dropbox.com/scl/fi/stbsondlzk05t09z7xf7z/Indonesia-s-official-sector-PRC-borrowings-and-borrowing-terms-IDS-December-2024.xlsx?rlkey=9ndf1pbfb7b5le5j55po2i69x&dl=06. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Indonesia was 2.9% in 2022. AidData estimates the interest rate of the China Eximbank loan that supported Section 3 of the Serang-Panimbang Toll Road Project by using this figure. See https://www.dropbox.com/scl/fi/stbsondlzk05t09z7xf7z/Indonesia-s-official-sector-PRC-borrowings-and-borrowing-terms-IDS-December-2024.xlsx?rlkey=9ndf1pbfb7b5le5j55po2i69x&dl=0

📚 Sources & References

Serang – Panimbang toll road: Govt waiting for China’s loan
Market Sounding Toll Road Concession - Panimbang Section Cileles - Panimbang
Serang - Panimbang Toll Road: The government’s portion to be auctioned this month
Serang-Panimbang toll road project halted after worker suspected of contracting COVID-19
SERANG – PANIMBANG TOLL ROAD
List of Planned Priority External Loans 2019
PT Kawasan Industri Jababeka Tbk. Investor Presentation
Serang-Panimbang Toll Road Construction Section III
Gets A 4.5 Trillion Loan From China
Serang-Panimbang收费公路第2段和第3段建于2022年初
Pemerintah Lanjutkan Proyek Tol Serang-Panimbang
Tol Serpan Seksi III Menunggu Kepastian Pendanaan
Percepatan Penyelesaian Konstruksi Jalan Tol Serang - Panimbang Seksi 2 & 3 Diharapkan Rampung Awal Tahun 2024
中国进出口银行与印尼财政部签署西冷—巴宁邦收费公路第三标段项目贷款协议
印尼西冷—巴宁邦高速公路项目第三标段正式开工
一带一路工程：印尼西冷至巴宁邦高速公路第三标段正式开工
印尼西冷—巴宁邦高速公路项目第三标段正式开工
Pembangunan Tol Serang Panimbang Seksi III Dimulai
Tol Serang-Panimbang Pakai Utang China
Luhut: Jangan Sampai Mubazir!
Seksi 3 Tol Serang-Panimbang Resmi Mulai Dibangun
Serang–Panimbang Toll Road
今天上午，卢胡特统筹部长和巴苏基工程部长共同为由中国政府优买贷款支持、中建路桥承建的西冷—巴宁邦高速公路项目第三标段工程鸣笛开工。热烈祝贺！
List of medium-term planned external loans 2020-2024 -2021 revision-
List of Priority External Loans
Seksi 3 Tol Serang-Panimbang Resmi Mulai Dibangun
Indonesia's official sector PRC borrowings and borrowing terms IDS December 2024 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.