Bukit Asam HBAP Subsidiary Gets IDR 19.2 Trillion Loans From Bank Mandiri

President Director of Bank Mandiri Darmawan Junaidi (right). (Photo: Maria Trisnawati/VOI)

PT Bank Mandiri Tbk established a strategic partnership with PT Huadian Bukit Asam Power (HBAP) in supporting the operations of the South Sumatra-8 Steam Power Plant (PLTU) in Tanjung Lalang Village, Muara Enim Regency, South Sumatra Province.

In this strategic partnership, Bank Mandiri provides investment credit financing of 1.27 billion US dollars or Rp. 19.24 trillion designed for refinancing and strengthening HBAP operations as a global standardized electricity provider.

Currently, the South Sumatra-8 Mouth Mining PLTU has operated commercially with a production capacity of 2x660MW and is part of the National Program for the Development of 35,000 MW Power Plants. This PLTU is also one of the power plants that utilizes efficient and environmentally friendly super critical technology with the application of Flue Gas Desulfurization (FGD) technology to reduce exhaust emissions.

"The cooperation we are working on today is a strategic step for business synergy between Bank Mandiri and HBAP, and of course support from China Huadian Group and PT Bukit Asam Tbk," said Bank Mandiri President Director Darmawan Junaidi to the media crew during a press conference at Paza Mandiri, Monday, September 30.

President Director of PT Bukit Asam Tbk, Arsal Ismail, said that the total investment in the South Sumatra Mouth Mining PLTU project reached 1.68 billion US dollars with a capacity of 1,320 MW. Of this total, continued Arsal, as much as Rp. 19.24 trillion was taken over by Bank Mandiri which was designed for refinancing needs and strengthening HBAP operations as a global standardized electricity provider.

"We borrowed from CEXIM bank the total investment value in dollars, USD 1.68 billion with 2 x 660 megawatts or approximately 1,320 megawatts. The one in the takeover (by Bank Mandiri) is because this loan is 75 percent. 25 percent. Now, that's around 1.27 billion US dollars equivalent if with the current measurement of approximately Rp. 20 trillion," explained Arsal.

On the same occasion, Chinese Vice President Huadian Overseas Investment Zhou Qingke, revealed that the credit facility provided by Bank Mandiri will be used to refinance HBAP's long-term loan and support the smooth operation of the Tanjung Lalang PLTU.

"With this financial support, HBAP is expected to continue to contribute significantly in supporting the electricity system in Indonesia, and achieve its long-term vision as an international standard electricity provider," he said.