PLN obtains Rp 50t loan from foreign banks

State-owned electricity company PT Perusahaan Listrik Negara (PLN) will get Rp 50 trillion loans from five foreign banks to help finance the construction of a total 10,000 MW power plants over the next five years.

PLN President Director Sofyan Basir said on Tuesday that the loans would be provided by the World Bank, Asian Development Bank, JICA from Japan, KFW from Germany, and AFD from France.

?We have been trusted by the foreign creditors. The loans will be used to support the development of the 10,000 MW power plants, which is part of the government?s target of 35,000 MW,? said Sofyan.

The new government of President Joko Widodo has set an ambitious target of developing a total of 35,000 MW of power plants until 2019 in a bid to increase power supply in the country and help accelerate economic growth. Of the total target, PLN has been assigned to develop 10,000 MW, which Sofyan said would require total funding of around Rp 120 trillion.

Sofyan said that he is optimistic to be able to raise the funding requirement as many other lenders including domestic are set to provide loans, as well as equity participation from the government. (*)