JAKARTA - The State Electricity Company (PLN) is said to have just received a foreign loan of US$ 610 million or equivalent to Rp. 8.7 trillion from the World Bank and AIIB (Asian Infrastructure Investment Bank) for the Pumped Storage PLTA Project in Indonesia. This information was obtained based on a press release from the Ministry of Finance (Kemenkeu) today.
Director General of Treasury of the Ministry of Finance Hadiyanto said this development will take place in West Java with an estimated electricity production capacity of up to 1,040 megawatts (MW). According to him, the output produced by the Pumped Storage HEPP will be aimed at increasing the power capacity for large area loads, such as Jabodetabek.
"We also facilitate PLN to develop strategic projects that carry the spirit of new and renewable energy (EBT). This is in line with one of the President's priority issues in the national development program," he said, Monday, March 14.
Hadiyanto added, Indonesia has committed to accelerating the energy transition by setting a target for the energy mix from NRE of 23 percent in 2025 and the fulfillment of net zero emissions (NZE) in 2060 or sooner.
"To support this commitment and in line with the focus of the energy transitions working group, the funding issue that is a priority for the G20 in the energy transition can be addressed by financing sources provided by the government in the form of foreign borrowing," he said.
For information, the disbursement of funds to be received by PLN is a form of government facility in collaboration with two global financial institutions. This commitment is realized through the signing of a Subsidiary Loan Agreement (PPLN/SLA) in the framework of Financing the Development of Pumped Storage Hydropower in The Java-Bali System Project.
Meanwhile, the signing was carried out by the Director General of Treasury of the Ministry of Finance, Hadiyanto, and the President Director of PT PLN (Persero), Darmawan Prasodjo at the Auditorium of the Head Office of PT PLN (Persero), South Jakarta.
"The government advises that PLN can carry out the projects financed by this SLA as best as possible and must minimize the potential delays in the implementation of the construction of the project in question. With such large funds and the construction of a Pumped Storage hydropower plant, it must be closely monitored for each project work, starting from the preparation, construction, to the maintenance period of this project," concluded Hadiyanto.
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