Indonesia eyes foreign loans to support electricity projects

Illustrative image (Photo: Okezone)

Jakarta (VNA) – Indonesia’s State Electricity Company PLN has said that it will mobilise funding from foreign resources, given that it needs an investment of around 72 trillion ringgit (4.7 billion USD) per year until 2030 in order to support electricity projects.

PLN Vice President in charge of Financial Institutions and Market Research Maya Rani Puspita said that the external funding support is in the form of State Capital Participation (PMN) of the government or through loans.

To date, several options for loan schemes that have been carried out by PLN include two-step loans or forwarding loans from the government.

Maya explained that two-step loans are a funding scheme with loans made on a Government-to-Government basis which will then be lent by the government to the PLN.

In addition, the PLN also has loans with direct lending schemes from within and outside the country, both with or without government guarantees./.

VNA