Islamic Development Bank Finances USD 150 Million Loan for a Toll Road in Indonesia

July 2022

It has just been revealed that the Indonesian government has signed a cooperation agreement with the Islamic Development Bank (IsDB) for financing the construction of the Trans South-South Road Infrastructure Phase 2 (TRSS-2).

IsDB is a multilateral development finance institution that is focused on Islamic finance for infrastructure development and located in Jeddah, Saudi Arabia. It will provide loan USD150 million out of the total construction cost of USD 450 million for TRSS-2 under the agreement, in accordance with Islamic sharia principles.

As part of TRSS-2, toll road sections will be built in East Java and DI Yogyakarta, with their length estimated at 67.78 kilometers, including a bridge spanning 443.1 meters. The roads will pass through the districts of Tulungagung, Blitar, Malang, and Bantul.

The Indonesian finance ministry revealed that it has also obtained funding separately from the Asian Development Bank for the project.

(Source: Channel News Asia)


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