PLN signs Rp32 trillion loan agreement with state lenders

Jakarta (ANTARA News) - 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 countrys 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.(*)