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Economy in brief: PLN secures Rp 2.2t loans for Riau power plant
State-owned electricity firm PLN has secured syndicated loans to support the development of a coal-fired power plant in Riau
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tate-owned electricity firm PLN has secured syndicated loans to support the development of a coal-fired power plant in Riau.
The syndicated loans involve seven banks and one state-owned firm, namely Bank DKI, Bank Jateng, Bank Aceh, Bank Kalteng, Bank Riau Kepri, Bank Kalbar, Bank Pembangunan Daerah Bali and PT Sarana Multi Infrastruktur. The loans, amounting to Rp 2.2 trillion, have 10-year tenor. The loans to develop the power plant, which will have 2x110 megawatts in capacity, will be guaranteed by the government, according to PLN.
The 2x110 MW Riau power plant is the last coal power plant under the Fast Track Program (FTP) of 10,000-MW electricity procurement phase I under the previous administration that has yet to receive financing.
'PLN needs big investment to complete the FTP phase I. Therefore, the government supports the company by issuing a government guarantee, which we expect to help PLN obtain a lower interest rate,' said Vincentius Sonny Loho, the Finance Ministry's director general of state assets.
