PLN drops 10% deposit requirement for power plant project

By Brigida Ernestina Elu Wea

State-owned electricity company PT PLN has decided to drop a 10 percent deposit requirement for local investors planning to develop power plant with capacity of less than 100 MW.

PLN President Director Sofyan Basir said on Friday that the new policy is part of new measures and revisions being prepared by his company to help increase the role of domestic investors and accelerate the development of power plants in the country as targeted by the government.

?We?re trying to ease the requirements, but they must also meet other requirements including a minimum of one year experience,? he said, adding that this has been discussed with the Indonesia Private Power Companies Association (APLSI).

APLSI Head Heru Dewanto welcomes the move by PLN to drop the 10 percent deposit requirement for local investors.

Sofyan, however, said that PLN will still require the 10 percent deposit for power plant projects with large capacity to help ensure that the developers realize the projects.

Sofyan also urged companies which have signed power purchase agreement (PPA) with PLN to accelerate the financial close process of their projects, which usually is completed within 12 months after PPA signing, to around six months.

Editing by Reiner Simanjuntak