Mandiri extends Rp4 trillion loan to finance PLN power plant projects

Indonesia?s largest bank in assets term, PT Bank Mandiri Tbk, has extended Rp4 trillion of rupiah loans to state utility company PT PLN to finance seven of the company?s power plant projects across the country.

The power plants are part of the government?s fast track program to develop 10,000 MW stage one.

Of the amount, Rp309.7 billion has been extended to finance coal-fired power plant PLTU Indramayu with capacity of 3x330 MW in West Java, Rp289.2 billion to finance PLTU Labuan with capacity of 2x315 MW in Banten, and Rp516.1 billion for 2x315 MW PLTU Rembang in Central Java.

Furthermore, Bank Mandiri also extended loans totaling Rp1.28 trillion to finance PLTU Lampung with capacity of 2x100 MW and PLTU Sumut in North Sumatera with capacity of 2x220 MW.

In addition, Bank Mandiri also has committed to provide loan to finance PLN?s transmission grid development, comprised of Rp627.2 billion for power transmission outside Java, Rp700 billion for Java-Bali transmission projects and Rp346.4 billion for the development of Java-Bali main power distribution.

Bank Mandiri said the bank is ready to support the development of second stage fast track program to develop 10,000 MW, which is mainly comprised of renewable energy in particular geothermal projects. (roffie)