JAKARTA (TheInsiderStories) – Indonesia’ power producer, PT Perusahaan Listrik Negara (PLN), received funding facilities from the Asian Development Bank (ADB) and Kreditanstalt fur Wiederaufbau (KfW) with total amount of US$910 million for electricity investment in Eastern Indonesia, said the director general at the finance ministry, Luky Alfirman, last week.
Total funding provided by the Germany’ bank worth of $310 million for the electricity investment in Sulawesi and Nusa Tenggara region.Then, ADB lend $600 million for the power investment program in the Kalimantan, Maluku, and Papua regions. For this investment, the Indonesian government is also present as guarantor.
PLN‘ finance director, Sinthya Roesly added, “With the guarantee through PT Penjaminan Infrastruktur Indonesia, PLN can get sufficient financial support, a long tenor, and a competitive cost of funds so that it is able to keep the basic costs of supply in order to remain efficient.”
Recently, the government has injected fresh capital Rp5 trillion ($354.60 million) for the 2021 fiscal year, to support the state utility provider expansion. Initially, the company proposed capital injection Rp20 trillion but has rejected by the shareholders.
According to the CEO, Zulkifli Zaini, the electricity producer is planned to used the fresh funds for capital expenditure, especially for the electricity distribution in Sumatra, Kalimantan, Sulawesi, Kalimantan, Sulawesi, Maluku, Papua and Nusa Tenggara. Beside from the capital injection, PLN now in the process to releases a local and SUKUK bonds with total amount Rp1.87 trillion.
PLN targets the company’ revenues could reached Rp391.6 trillion in 2021 after hit by the pandemic in this year. Zaini told the house speakers, the company will make various efforts like increasing sales of electricity, maintain adequate electricity supply, and provide competitive rates for industrial customers to achieved the target.
The producer will also strive to enforce the Domestic Market Obligation of coal and gas in order to ensure certainty of costs and supply of primary energy. The firm is the dominant Indonesian operator of generation plants, and transmission and distribution networks.
Its transmission network covered around 58,959 circuit kilometers and its distribution network covered around 979,855 circuti kilometers as of end 2019. PLN is the country’ largest electricity producer, with a capacity of around 45.7 gigawatt, which accounted for 72.5 percent of the market as of December 2019. It is the sole off taker for Indonesia’ independent power producers.
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