Arcandra to meet lenders to develop new, renewable energy

Jakarta (ANTARA News) - Vice Minister of Energy and Mineral Resources Arcandra Tahar is set to hold talks with some lenders to develop new and renewable energy in Indonesia.

"I feel ashamed that they (lenders) said they have a lot of funds but none of us has come to them to establish partnership. I will try to have the interest rate set at less than 6 percent," Arcandra said here on Tuesday.

Arcandra also proposed partnership with international banks which can offer an interest rate of up to 2 percent.

He made the remarks in response to the problem faced by the association of wind-powered electricity plants with a capacity of less than 10 MW. They said they had difficulties finding loans with appropriate interest rate.

Zautmi who is a member of the association said he has called for the effort to provide facilities to developers of power plants with a capacity of less than 10 MW with regard to Regulation of the Energy and Mineral Resources Minister No. 12 of 2017.

He said none of local banks is able to offer interest rate in keeping with the condition of small developers. "If the interest rate is converted into rupiah it can fetch up to 11 percent," he said.(*)

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