JAKARTA (TheInsiderStories) - The Japan Bank for International Cooperation or JBIC and consortium give a direct lending Yen37.2 billion (appr. US$370 million) for state-own power producer PT Perusahaan Listrik Negara to develop gas-based power plant (PLTGU) Jawa 2 in Central Java. The bank portion Yen22.3 billion at the project with capacity 810 megawatt (MW).
The loans have tenure 14.5 years with lower coupon rate. Previously, JBIC has financed the extension of 3×315 MW’s PLTGU Lontar in Banten province with worth Yen37.9 billion.
“This is the second loan with the same scheme without government guarantees to PLN,” CEO JBIC Tadashi Maeda said at the press conference after Government of Indonesia – JBIC Financial Policy Dialogue Framewrok Annual Meeting 2016 in Jakarta.
The Japanese public financial institution and export credit agency also considers to financed other infrastructure projects such as PLTGU Jawa 1, transportation projects, LNG Receiving Terminal own by energy company PT Pertamina and the bullet train project from Jakarta-Surabaya.
According to Maeda, Marubeni Corp., Sojitz Corp. and Pertamina are preffered bidder for PLTGU Jawa 1 and the investment value larger than PLTGU Jawa 2. While in the LNG Receiving Terminal at Bojonegoro, East Java involved Mitsui Corp., Tokyo Gas and Pertamina.
“In addition we also consider financing in the transport sector such as railways and highways without a guarantee from the government (PPP). We will continue to do coordination and negotiation as PT IIF, PT SMI, Bappenas, KPPIP and other parties,” He said.
In a meeting with Vice President Jusuf Kalla on Oct. 19, Maeda said Japan wishes to take more opportunity to finance Indonesia’s government enterprises like Pertamina and PLN “without government guarantee.
During his visit in Indonesia, Maeda meet with Vice President Jusuf Kalla, Coordinating Minister for Economic Affairs Darmin Nasution, Minister of National Development Planning/Bappenas Bambang Brodjonegoro and Finance Minister Sri Mulyani for further talks on which projects the JBIC will finance.
In 2016, JBIC commit to lend US$3.7 billion for infrastructure projects in Indonesia. Previously in 2015 JBIC has give loan $900 million in 2015 and $1.0 billion in 2014.
The lender also invest in Samurai bond issued by Indonesian government. In five times issuance, JBIC has bought Indonesian Samurai bond $8 billion.
Head of Fiscal Policy Suahasil Nazara adding, Indonesia is consider to enter Japan bond market again in 2017 to maintain the market confidence. He denied to give more explanation on the plan.
JBIC, He continued, Government of Japan’s now allowed the country’s bank to give loan on social infrastructure projects. Indonesia we will explores more how to grab this opportunity, Suahasil said.