IPPs still need government's guarantee

Independent power producers still need letters of comfort (LoC) from the government as a gurantee for their investment given the lingering uncertainties in the sector, Director General of Electricity Yogo Pratomo said, as reported by Investor Daily.

He said the most important thing for the government as well as state electricity company PT PLN was now how to improve investment climate in this sector, Yogo said in his speech during the commemoration of the 59th Electricity Day.

"Once the investment climate becomes more conducive, I don't think the investors will continue to require LoC to guarantee their projects," he said. (*)