PLN plans new borrowings of more than $3b next year
Saturday, December 2 2017 - 02:05 AM WIB
State-owned electricity firm PT PLN plans to get new borrowings of US$3 billion-$5 billion (Rp 30 trillion-50 trillion) next year to help finance construction of new power plants other power facilities targeted under the government?s 35,000 MW program, Kontan reported on Saturday.
The paper quoted PLN Finance Director Sarwono Sudarto as saying that the company plans to get the required funds via bonds, bank loans, or asset securitization, depending on which funding sources will be the cheapest. ?We?ll see what our internal needs will be,? he said.
He said that as per September of this year, PLN has spent Rp 150 trillion to finance construction of new power plants under the 35,000 MW program. The state-owned utility company has been assigned to develop 10,000 MW, while the remainders assigned to independent power producers.
Sarwono said that around Rp 90 trillion of the investment was financed via internal funds, while Rp 60 trillion via loans.
He said that until end of this year, total investment spent is projected to reach Rp 170 trillion.
Minister of Finance Sri Mulyani Indrawati has previously warned PLN of its rising debt service level at a time when the government bans the state utility firm from increasing electricity tariff of its customers. (*)