PLN Receives Loan Guarantee Of 500 Million US Dollars From NEXI Japan

Illustration (Photo: Doc. Antara)

PT PLN (Persero) received loan guarantee support of USD 500 million from Nippon Export and Investment Insurance (NEXI).

PLN President Director, Darmawan Prasodjo explained that through collaboration with NEXI, PLN received loan guarantee support of 200 million US dollars for the initial stage.

This loan guarantee support is devoted to the clean energy project and the decarbonization agenda carried out by PLN in order to go to Net Zero Emission in 2060.

Through this collaboration, apart from PLN obtaining loan guarantees, later there will also be technology cooperation related to clean energy. This advanced technology adaptation from Japan is what Indonesia needs in the energy transition," Darmawan said in a statement to the media, Monday, March 6.

He explained that the purpose of this agreement was also to affirm the terms and conditions of the loan, and the use of funds amounting to US $ 200 million from NEXI as an initial stage of financing insurance support of a total of US $ 500 million given to PLN.

This collaboration is in line with the NEXI LEAD Initiative which was launched in December 2020, which is to facilitate decarbonization in Indonesia.

Darmawan added, this collaboration is expected to bring the relationship between PLN and NEXI closer.

"This guarantee agreement can increase investor confidence, and it is hoped that it can also strengthen economic relations between Japan and Indonesia through solid cooperation between PLN and NEXI," said Darmawan.

Chairman and CEO of NEXI Atsuo Badminton said the MoU will consolidate PLN and NEXI's cooperation in the electricity sector in Indonesia. In particular, cooperation facilitates the supply of energy transition, economic development, and supports realistic decarbonization in Indonesia.

"NEXI will support decarbonization efforts in the Indonesian electricity sector by increasing collaboration between NEXI and PLN," saidLAdda.

Previously, the Memorandum of Understanding (MoU) on Cooperation in the Export Credit Guarantee and Insurance Division was agreed between NEXI and PLN on April 25, 2022, and then amended for the first time on November 15, 2022.