Buyer's Credit for National Power Company of Indonesia
Supporting Export of Facilities for Kalselteng 2 Coal-Fired Power Plant by Japanese Companies
- Area: Asia
- Export Loans
The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed on June 20 a loan agreement in buyer's credit (export loan) totaling up to approximately JPY10.1 billion and USD53 million (JBIC portion) with PT PLN (Persero) (PLN), a state-owned power company in Indonesia. The loans are cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd., bringing the total cofinancing amount to approximately JPY16.9 billion and USD89 million, with Nippon Export and Investment Insurance (NEXI) providing insurance for the portion cofinanced by the private-sector bank.
The loan is intended to provide financing for PLN to purchase a complete set of facilities, including boilers (IHI Corporation) and steam turbine power generators (FUJI ELECTRIC CO., LTD.), from ITOCHU Corporation and other entities for the construction of a Kalselteng 2 coal-fired power plant (2×100 MW) in South Kalimantan Province on the island of Kalimantan, Indonesia.
In order to respond to the country's surging electricity demand which has risen in line with continued economic growth, the Indonesian government has committed to promote its "35 GW power plants development plans". The Kalselteng 2 coal-fired power plant is part of this power development plan. Through JBIC's support for the export of power generation equipment by Japanese companies, this loan will contribute to maintaining and strengthening the international competitiveness of Japanese industries, and, at the same time, it is expected to support Indonesia's economic development by realizing steady power supply.
As Japan's policy-based financial institution, JBIC will continue to financially support the export of infrastructure-related facilities as well as the overseas business deployment of Japanese companies, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.