PLN asked to use local funds for power projects outside Java

Vice President Jusuf Kalla has asked state owned electricity company Perusahaan Listrik Negara (PLN) to use local funds to finance power projects that will be built outside Java and Bali, Bisnis Indonesia reported Tuesday.

Yogo Pratomo, the chairman of the electricity crash program, said that the Vice President had instructed PLN to take the advantage of the local funds in cooperation with local banks to finance the power plants to be built outside Java.

"Vice President wants PLN to use local funds for the construction of power projects outside Java and Bali," he told the press Monday following a meeting with Jusuf Kalla.

The government plans to build power projects with a capacity of 3,100 MW as part of the crash program. The construction of these projects will cost about US$2.5 billion.

Yogo said that the pre-qualification tender for the construction of these power projects would be opened later this month.

PLN president director Eddie Widiono said that state owned Bank Negara Indonesia (BNI) had been assigned to coordinate the funding of the projects with other local banks.

"Although BNI acts as the coordinator, other local banks will also be invited to take part. BRI has, for example, expressed interest to take part in these projects," he added. (*)