Buyer’s Credit for Exporting Transmission and Substation Equipment to Indonesia
Supporting Export of Power Infrastructure Equipment by Japanese Companies

• Region: Asia
• Infrastructures
• Machinery and Equipment
• Export Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on November 19 a buyer's credit (export loan) agreement amounting to about 1,239 million yen (JBIC portion) with the government of the Republic of Indonesia. The loan is cofinanced with Mizuho Corporate Bank with the overall cofinancing amount totaling about 2,065 million yen.^*1
    
2. The Government of Indonesia intends to on-lend the loan to a state-owned power company, PT. PLN (Persero), to finance the project (the “Project”) for which PLN purchases power equipment for installing power substations and underground cables in Jakarta, the capital of Indonesia, from Marubeni Corporation.
    
3. It has become imperative for Indonesia to expand transmission networks as a part of the enlargement of power supply capacity, in order to meet increasing power demand backed by stable economic growth in recent years. The Project will help to stabilize the power supply in Jakarta by applying reliable Japanese power supply infrastructure technologies. Therefore, the loan will contribute to maintaining and improving the international competitiveness of Japanese exporters, as well as meeting the needs of the Government of Indonesia.
    
4. JBIC will continue to support Japanese companies’ participation in infrastructure projects in Indonesia, by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.
    

Note

1. *1 Nippon Export and Investment Insurance (NEXI) will provide Buyer's Credit Insurance for the portion financed by Mizuho Corporate Bank.