Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Kartini L Makmur / Robert Sidauruk
State Power Company (PLN) is currently engaged in intense dialogue with the Finish government on plans to finance the soon to be established Arun and Bengkanai Gas-Based Power Plants (PLTG). The financing will be structured under a new loan scheme through the Export Credit Agency (ECA), which will preclude the Government from being a guarantor for PLN.
Under the ECA scheme, PLN must find its own sources of finance for power plant infrastructure projects. Although the government will not guarantee payment, making the transaction a purely commercial transaction, the agreement will be subject to approvals from five different Ministers, namely: State Owned Enterprise, Finance, Energy and Mineral Resources, the National Development Planning Board, Economic Coordination, and also the Governor of Bank Indonesia.
“Foreign loans using the ECA scheme are limited to projects that require foreign currency and technology that is not available in Indonesia,” explained Setio Aggoro Dewo, Director of Finance at PLN.
The ECA scheme substantially differs as compared to the Sub Loan Agreement (SLA) scheme commonly used by PLN to acquire foreign loans. Under the SLA scheme, the Government enters the loan agreement with the foreign party and PLN only receives the loan funds once the House of Representative approves the disbursement.
The SLA scheme is commonly chosen by PLN on the basis of Presidential Directive No. 59 of 1972 on the Acceptance of Foreign Credit under which State Owned Enterprises (BUMNs) may not request payment guarantees from the Government or BI. Similarly, the Government is also prohibited from issuing surety bonds to pay the debts of private companies or BUMNs.
Dewo further indicated that the ECA scheme provides a more favorable interest rate at 2.1% with a tenure of 12 months. This is relatively low if compare to PLN having to issue bonds for which the interest rate could reach up to 5.25% for a period of 30 years.
“Under the ECA scheme, PLN can minimize risk and at the same time obtain a relatively low Interest rate with shorter terms,” Dewo added.
Under the proposed loan agreement being discussed, Finland will provide USD 130 million loan to finance PLN’s Arun and Benkanai power plants. There are also 5 other power plant projects that are expected to be financed using the ECA scheme, namely Jatigede, Grati, Muara Karang, including the rehabilitation of two plants at Suralaya.
(ds/kc)
Kartini L Makmur / Robert Sidauruk
State Power Company (PLN) is currently engaged in intense dialogue with the Finish government on plans to finance the soon to be established Arun and Bengkanai Gas-Based Power Plants (PLTG). The financing will be structured under a new loan scheme through the Export Credit Agency (ECA), which will preclude the Government from being a guarantor for PLN.
Under the ECA scheme, PLN must find its own sources of finance for power plant infrastructure projects. Although the government will not guarantee payment, making the transaction a purely commercial transaction, the agreement will be subject to approvals from five different Ministers, namely: State Owned Enterprise, Finance, Energy and Mineral Resources, the National Development Planning Board, Economic Coordination, and also the Governor of Bank Indonesia.
“Foreign loans using the ECA scheme are limited to projects that require foreign currency and technology that is not available in Indonesia,” explained Setio Aggoro Dewo, Director of Finance at PLN.
The ECA scheme substantially differs as compared to the Sub Loan Agreement (SLA) scheme commonly used by PLN to acquire foreign loans. Under the SLA scheme, the Government enters the loan agreement with the foreign party and PLN only receives the loan funds once the House of Representative approves the disbursement.
The SLA scheme is commonly chosen by PLN on the basis of Presidential Directive No. 59 of 1972 on the Acceptance of Foreign Credit under which State Owned Enterprises (BUMNs) may not request payment guarantees from the Government or BI. Similarly, the Government is also prohibited from issuing surety bonds to pay the debts of private companies or BUMNs.
Dewo further indicated that the ECA scheme provides a more favorable interest rate at 2.1% with a tenure of 12 months. This is relatively low if compare to PLN having to issue bonds for which the interest rate could reach up to 5.25% for a period of 30 years.
“Under the ECA scheme, PLN can minimize risk and at the same time obtain a relatively low Interest rate with shorter terms,” Dewo added.
Under the proposed loan agreement being discussed, Finland will provide USD 130 million loan to finance PLN’s Arun and Benkanai power plants. There are also 5 other power plant projects that are expected to be financed using the ECA scheme, namely Jatigede, Grati, Muara Karang, including the rehabilitation of two plants at Suralaya.
(ds/kc)