Indonesian state-owned port operator Pelindo III is seeking investment funds of IDR 9trn ($644.6m) for business expansion in the next five years, local reports said.

Pelindo III wants to increase its assets to IDR20trn president director Djarwo Surjanto said, as it tries to build up infrastructure amid a funding shortfall.

The company has delayed the construction of small ports due to a suspension in state capital injections. This was supposed to inject IDR1trn to fund the construction of minor ports in Maumere, Waingapu, Kupang and Kalabahi (all in East Nusa Tenggara), Bima in West Nusa Tenggara, Kotabaru in South Kalimantan and Kumai in Central Kalimantan.

“Those ports [projects] are not bankable, but actually important to increase economic activity. We are currently trying to find financing," Djarwo said. He added that management was also planning on cross-financing from its profitable ports, such as Tanjung Perak in Surabaya, to finance the small ports.

With a debt-to-EBITDA (earnings before income tax and depreciation) ratio of 2.5, the company struggles to get external funding through bond issuance or bank loans.