Ministry, PLN Ink Loan Agreement for Pumped Storage Hydropower

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Jakarta (ANTARA) – The Ministry of Finance and state-owned power utility PT PLN have signed a Subsidiary Loan Agreement (SLA) to finance the development of pumped storage hydropower under the Java- bali.

The project has a total loan value of US$610 million, consisting of a US$380 million World Bank loan and a US$230 million loan from the Asian Investment Bank in infrastructure.

“SLA is one of the sources of finance used by PT PLN to fund power plant projects in Indonesia, especially for renewable energy power plants,” Finance Ministry Treasury Director General Hadiyanto said on Monday. in Jakarta.

It is also expected to support energy transition and help Indonesia meet its carbon reduction target and reach the target of 23% renewable energy by 2025 and net zero emissions by 2060.

Meanwhile, the SLA funding commitment for new renewables that have not been distributed has reached US$197.5 million or Rs 2.82 trillion. The energy funding that has been processed amounts to 957.5 million US dollars or 13.66 trillion rupees.

The funding is used for hydroelectric and geothermal development projects and green financing mechanisms.

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In addition, the sub-loan agreement for the energy sector is distributed to PT PLN, the public oil and gas company PT Pertamina and the public infrastructure finance company PT SMI.

“Providing SLAs has brought tremendous benefits to various industries,” Hadiyanto said.

The benefits include the development of energy infrastructure for the realization of the 35,000 MW electricity program through the financing of transmission, substations and power plants operating on both non-renewable and renewable energy .

Moreover, other sectors can also feel these benefits, such as transport, health and trade.

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