Bosowa Corporation, a business group with headquarters in Makassar, South Sulawesi, has secured Rp 394.8 billion ($44 million) from Bank Rakyat Indonesia to help finance the building of a liquid gas terminal in South Sulawesi, a top executive said.
“The funds will be used to build the biggest liquid propane gas (LPG) terminal in the eastern part of Indonesia,’’ said Erwin Aksa, chief executive of Bosowa Group, in a statement sent to the Jakarta Globe.
The group will build the liquid propane gas terminal through its unit Bosowa Duta Energasindo.
Erwin said that Bank Rakyat, the country’s second-largest lender by assets, signed the loan recently in Jakarta, but he did not give a time frame.
The gas terminal’s total cost is estimated at $70 million, said Reno Junizwan, president director of Bosowa Duta Energasindo. He added that the funds from Bank Rakyat and other sources would finance the project.
The company has asked state construction company Wijaya Karya to build the gas terminal, and it should be finished in about 20 months, Reno said. The terminal will help promote the government’s plan to convert the use of kerosene into gas, Erwin said.
The project, he said, is a joint effort between Bosowa Group and state oil and gas company Pertamina. Under the agreement, which will last 10 years, Bosowa will rent the liquid propane gas terminal to Pertamina.
The terminal, on a 14.7-hectare plot in the Tamalanrea district of Makassar, will have a capacity of 10,000 tons.
According to the company’s Web site, Bosowa will distribute the gas to other cities in Sulawesi, including Manado and Gorontalo in North Sulawesi, Kendari in Southeast Sulawesi and other small islands around Sulawesi.
Bosowa Group has been in business in Indonesia for 35 years. The group was established by Aksa Mahmud, Erwin Aksa’s father. Like many other Indonesian corporations, Bosowa group was set up as trading company.
The group has businesses in a number of industries, ranging from cement to automobiles, property, infrastructure, power plants, financial services and natural resources.