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View all search resultsPLN to receive Rp 9.6t to build power infrastructure
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tate-owned electricity giant PLN is slated to receive Rp 9.6 trillion (US$695 million) in state capital injections (PMN) from the government this year to develop power infrastructure in Indonesia and increase the country’s electrification ratio.
The capital comprises Rp 5 trillion from the 2020 state budget and Rp 4.6 trillion diverted from the Energy and Mineral Resources Ministry budget. PLN will use the capital to develop renewable energy power plants, power lines and substations.
The funds allocation is stipulated in Government Regulation No. 37/2020 and No. 36/2020, both of which were issued on July 7.
“We will use the funds as equity and reduce PLN loans,” PLN president director Zulkifli Zaini told House of Representatives lawmakers in Jakarta on Monday evening.
His presentation and the regulations show that 86 percent of the capital is slated to develop transmission infrastructure, including high-voltage power lines and substations, all in western Indonesia except for several projects in Sulawesi.
The country’s heavy investment in the infrastructure of electricity distribution is part of Indonesia’s efforts to achieve a 100 percent electrification ratio this year. The ratio – a measure of the proportion of communities with electricity – reached 98.89 percent last year.
However, Zulkifli said the latest capital injection was insufficient to meet Indonesia’s power infrastructure targets. He said that meeting such targets would cost an estimated Rp 15.2 trillion, funds that the company has been raising through bank loans and global bonds.
