Mandiri, BNI ready to support PLN with Rp 15t in loans

Two major state-owned banks, Bank Mandiri and Bank Negara Indonesia (BNI), have expressed commitments to disburse loans to state electricity firm PT PLN, which needs Rp 15 trillion to support its energy development projects.

"Of its total investment requirement of Rp 70 trillion, PLN needs banks to supply Rp 15 trillion to provide electricity to the nation. Our [internal] cash is not enough, so we're expecting to raise funds from global bonds and national banks," PLN president director Dahlan Iskan said in a talk show at the Indonesia Banking Expo 2011 at the Jakarta Convention Center on Wednesday.

The two lenders were ready to form a syndicate with other banks to realize the plan, the banks' executives said on the sidelines of the expo.

Mandiri president director Zulkifli Zaini said the lender, the biggest by assets in Indonesia, was committed to disbursing up to Rp 50 trillion in loans this year with a credit ceiling of Rp 12 trillion for each debtor.

"We have a long history of commitments [with PLN] and will renew this commitment through this new Rp 15 trillion program for PLN investment financing," Zulkifli said.

BNI president director Gatot M. Suwondo, meanwhile, said the lender would disburse up to Rp 13 trillion in new loans this year, and was committed to funding the energy sector.

"The PLN request for loans will be met through a syndication of banks."
The portion that each of the banks would contribute to the PLN loan, however, has not been decided.