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Govt eyes overseas loans for power program
State power firm PT Perusahaan Listrik Negara (PLN) says companies from Europe, Japan and the Middle East have shown an interest in investing in the second phase development of the country’s 10,000 megawatt (MW) power program
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State power firm PT Perusahaan Listrik Negara (PLN) says companies from Europe, Japan and the Middle East have shown an interest in investing in the second phase development of the country’s 10,000 megawatt (MW) power program.
“We’ve seen more interest from the companies from those regions in giving out loans for the program,” PLN president director Fahmi Mochtar said Monday.
“All we need to do is discuss the pricing, if it’s sustainable or not.”
The initial investment for the first phase of the power program was dominated by China.
The project’s second phase is expected to start in 2012, with power generation starting in 2014.
Some independent power producers (IPPs) will be involved in the program.
The US$8 billion project was launched in 2006 to meet increasing demand for electricity nationwide.
All power plants from the first phase belong to PLN, while the funding is dominated by Chinese investors, including the Bank of China, the China Development Bank and Chexim Bank, with total investment amounting to about $1.5 billion.
Meanwhile, the Energy and Mineral Resources Ministry plans to allocate around Rp 425 billion ($37 million) of its Rp 500 billion stimulus package allocation to developing electricity transmission, networks and depots.
“The amount will be allocated in power plant and network projects in Java, Bali, Nusa Tenggara, Sulawesi, Maluku and Papua,” said ministry secretary-general Waryono Karno.
“The development in Nusa Tenggara and West Java will receive Rp 230 billion and will absorb around 4,500 workers, while the one in Sulawesi will absorb 2,850 workers with an allocation of Rp 195 billion.”
As for the rest of the funds, worth Rp 75 billion, Waryono said they would be allocated to the Independent Village Development program and would absorb around 7,600 workers.
The ministry predicts the package will be able to absorb a total of around 15,000 workers during the current global economic crisis.
“Unemployment is the enemy these days,” said Energy and Mineral Resources Minister Purnomo Yusgiantoro.
“The stimulus will allow us to absorb more workers during the crisis.” (hdt)
