PLN?s capital expenditure reaches Rp 70t this year

By Brigida Ernestina Elu Wea

State owned electricity firm PT Perusahaan Listrik Negara has allocated Rp 70 trillion in capital expenditure (capex) this year, up from Rp 50 trillion in 2015.

The funds will be mostly used to develop transmission lines with a small portion for the development of power plants, Sarwono, PLN?s Director of Finance, said.

The capex funds will be mostly raised from local banks. A small portion will be raised from internal cash resources, he said.

He said the firm secured syndicated loans amounting to Rp 12 trillion from local banks and financial institutions, namely BRI, Mandiri, BNI, BCA, Lembaga Pembiayaan Ekspor Indonesia (Indonesian Exim Bank) and PT Sarana Multi Infrastruktur. PLN continues looking for loans this year, mainly from local banks.

Editing by Johannes Simbolon