PLN obtains loans from Japanese lenders
Wednesday, June 21 2017 - 12:07 PM WIB
State-owned electricity company PT PLN obtained export loan facilities worth about 16.9 billion yen and US$89 million from Japan Bank for International Cooperation (JBIC) and Tokyo-Mitsubishi UFJ Ltd.
Nippon Export and Investment Insurance (NEXI) provided insurance for the portion of the loans provided by Tokyo-Mitsubishi.
JBIC said in a statement that it provided approximately 10.1 billion yen and $53 million to the total loans, signed on Wednesday.
The bank said that the buyer?s credit will be used to finance the purchase of a complete set of facilities, including boilers from Japan?s IHI Corporation, and steam turbine power generators from Fuji Electric Co Ltd and Itochu, and other entities for the construction of Kalselteng 2 coal-fired power plant (2?100 MW) in South Kalimantan Province.
The Kalselteng 2 power plant project is part of the Indonesian government?s program to develop a combined 35,000 MW of power plants through 2019. ?Through JBIC's support for the export of power generation equipment by Japanese companies, this loan will contribute to maintaining and strengthening the international competitiveness of Japanese industries, and, at the same time, it is expected to support Indonesia's economic development by realizing steady power supply,? the statement said.
As Japan's policy-based financial institution, JBIC said it will continue to financially support the export of infrastructure-related facilities as well as the overseas business deployment of Japanese companies, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
Editing by Reiner Simanjuntak