PLN Signs Rp32 Trillion Loan Agreement With State Lenders

Jakarta (Antara Bali) - The national power utility PT PLN on Friday signed a Rp32 trillion credit commitment with a syndicate of three state lenders - Bank Rakyat Indonesia (BRI), Bank Mandiri and Bank Negara Indonesia (BNI).

The loan agreement including  Rp12 trillion in  investment credit and Rp20 trillion  in working capital credit, was signed by President Directors of PLN Sofyan Basir, BNI Achmad Baiquni, BRI Asmawi Syam,  and Bank Mandiri Kartika Wirjoatmodjo, in front of State Enterprises (BUMN) Minister Rini Soemarno.

"The financial support is provided to meet investment in power generating project and to strengthen PLN cash flow in paying for primary energy, " PLN President Director  Sofyan Basir  said.

The plan is that the  investment credit  would be used to finance construction of power generating plants, transmission and distribution systems  and other supporting facilities.

The working capital credit would be used to strengthen the cash flow of PLN to pay for primary energy.

Under the loan agreement, each of the banks would provide a credit ceiling of up to Rp4 trillion  for 10 years.

"With the loan funds construction of new power plants , transmission  and distribution networks  and supporting facilities could be accelerated mainly to support the implementation of the government program to build 35,000 megawatt power plants until 2019," Sofyan said
   
Minister for BUMN Rini Soemarno  said she endorsed the commitment of state lenders in providing financial support for PLN.

"This is part of synergy among BUMNs I have always talked about  that all state companies should support each other to create efficiency," Rini said.

PLN had heavy responsibility for generating power to meet the country's requirement, she said.

"Through synergy the host of problems  could be sorted out one by one. Through this cooperation we hope the electrification target all over the country could become a reality," she said. (WDY)