The company required supportive funding, with low-cost funds to minimize the funding gap and enhance funding leverage with sizing and timing considerations, such as the PMN and Subsidiary Loan Agreement (SLA).
Jakarta (ANTARA) - President Director of state-owned electric company PT PLN Zulkifli Zaini affirmed that the 2022 State Equity Participation (PMN) of Rp5 trillion aims to support the government's priority programs on energy independence and electricity infrastructure development.

Zaini emphasized that the program was PLN's commitment to achieving the energy mix target of 23 percent by 2025.

He noted that investment planning was prioritized for the development of transmission systems for power evacuation from plants, cost of supply reduction, reliability of electricity systems, and sales improvement.

"For this reason, we seek the support of members of Commission VI of the House of Representatives to approve the proposal of additional 2022 PMN funding of Rp5 trillion to PLN," Zaini stated during a hearing meeting with the House's Commission VI here on Wednesday.

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Zaini deemed the 2022 PMN for investment allocation as necessary in order to reduce the funding gap and bolster funding leverage to finance the development of electricity infrastructure in a sustainable manner.

Moreover, he noted that in the 2022 PMN, the National Economic Recovery Program (PEN) allocation of Rp682.69 billion was required to accelerate infrastructure development in five super priority tourism destination areas that are planned to be opened next year.

"PMN can also help PLN's financial and capital structure, considering the fact that the company's current debt burden is quite high," he highlighted.

For the implementation of the 2022 PMN, he also sought other assistance for the advancement of road and transportation infrastructure access related to geographical conditions and support from local governments on land acquisition.

Zaini further pressed for help to increase production in villages, especially small, medium, and cooperative businesses, so as to bolster electricity consumption.

The president director noted that the company required supportive funding, with low-cost funds to minimize the funding gap and enhance funding leverage with sizing and timing considerations, such as the PMN and Subsidiary Loan Agreement (SLA).

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Translator: Agatha V, Kenzu T
Editor: Suharto
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