The building of the State-owned Electricity Company of Indonesia, PT Perusahaan Listrik Negara (PLN). Image: TEMPO/M Safir Makki
TEMPO.CO, Jakarta - State-owned power company PT PLN will be seeing a loan from bank or other financing institution as backup funds. The decision was made following the postponed ratification of the State Capital Participation in the 2016 State Budget Draft.
PLN president director Sofyan Basir said a number of institutions that have offered the loan include the China Development Bank, the KfW Development Bank, and Japan Bank for International Corporation (JBIC).
"There are plenty of foreign loans with low interest rates an long terms of 20-40 years," Basir said after the opening of the 70th National Electricity Day Seminar and Exhibition yesterday, Bisnis Indonesia reported.
The government had planned to inject PLN with a capital of Rp10 trillion, but so far there is no clarity about when that fund could be disbursed. As a state power company, PNL requires about Rp200 trillion of funding each year, of which just Rp70 trillion comes from the company's treasury.
