JAKARTA. PT Jhonlin Agro Raya Tbk (JARR), a palm refinery company, has guaranteed its assets worth IDR 1.4 trillion to PT Bank Mandiri (Persero) Tbk (BMRI).

Temmy Iskandar, Director of Finance of JARR, confimed that the asset guarantee is related to investment credit secured from BMRI. The signing of this loan agreement took place on October 24, 2024.

Some of the assets that have been submitted as guarantee include 12 certificates of rights to use of palm plantation, biodiesel factory, cooking oil production facility, as well as a power plant and supporting facilities. In addition, there is also a corporate guarantee under the name of PT Eshan Agro Sentosa.

“This transaction has secured approval from shareholders,” said Iskandar in the official statement.

Iskandar further mentioned that the fund secured by JARR from this credit investment from BMRI will be used to refinance all bank loans owned by BMRI and South Kalimantan Regional Bank. The tenor for this investment credit facility is said to extend to 96 months. (KR/ZH)