JAKARTA. PT Jakarta Setiabudi Internasional Tbk (JSPT), a company that leases real estate properties, has extended a loan facility to one of its subsidiaries, namely PT Bali Nusadewata Village (BNV).

Fred Perry Martono, Director of JSPT, said that the loan facility limit for BNV is IDR 4.9 billion. This loan facility has a term of 3 years and can be extended, with an interest of 6.5% per year.

"Providing shareholder loans from the company to BNV will provide efficiency compared to when a subsidiary makes loans to other parties," said Martono in his official statement.

Loan interest will be paid annually, during the credit agreement period. Interest will be recorded as interest income, but will be eliminated in JSPT's consolidated financial statements.

"Thus, on a consolidated basis, the company has no impact on the transaction," said Martono. (KR/LM)