PT Penjaminan Infrastruktur Indonesia (Persero) / PII, together with the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance of the Republic of Indonesia signed a Government Guarantee Agreement for the PT PLN (Persero) Sustainable and Reliable Energy Access Program (SREAP) project in Java (Western and Central Java). ). The signing of the agreement was carried out by the President Director of PT PII (Persero) M. Wahid Sutopo and the Director General of Financing and Risk Management of the Ministry of Finance Luky Alfirman representing the Government of Indonesia, the President Director of PT PLN (Persero) Darmawan Prasodjo as the SOE who received the assignment, and the Asian Country Director. Development Bank (ADB) as lender in Jakarta, Thursday (19/5).
Several agreements were signed at the event, namely the Guarantee Implementation Agreement (P3) - between PT PII (Persero) and PT PLN (Persero), the Guarantee Agreement between the Ministry of Finance and ADB, as well as a Supplemental Letter related to the Guarantee Agreement between the Ministry of Finance, PT PII (Persero) and ADB.

PII President Director M. Wahid Sutopo stated that PLN as one of the state-owned enterprises has won the trust to complete infrastructure projects related to electricity. Therefore, through project guarantees, his party is committed to accelerating the development of infrastructure projects that can optimize access expansion and strengthen electricity transmission and distribution network services in order to support the strengthening of the community's economy. "The guarantee support for the PLN SREAP Project is also our commitment to supporting BUMN's efforts to implement green-energy-based infrastructure projects, because one of the development targets of this loan is to increase the infrastructure development of Public Electric Vehicle Charging Stations (SPKLU) and increase the roof business. -top solar PV”, said Sutopo.
Meanwhile, the Director General of Financing and Risk Management of the Ministry of Finance, Luky Alfirman said that the signing of this Guarantee Agreement was a commitment of the Government through the Ministry of Finance and SMV of the Ministry of Finance, in this case PII in an effort to support the acceleration of infrastructure development, including the Transmission and Distribution Network Development project. in West Java and Central Java PLN.

"This guarantee is a form of government support to reduce the cost of borrowing from SOEs in order to maintain the sustainability of SOE corporations. In addition, PII's role as co-guarantor of government guarantees is very useful as a ring fencing for the State Budget and assists the Government in managing state financial risks arising from Government support facilities. "explained Luke.

PLN President Director Darmawan Prasodjo emphasized that this agreement is proof that PLN is not fighting alone to deal with climate change.
"With the guarantee agreement from the government, the available investment funds have low interest rates, low costs, and risks can be managed properly. What does that mean? We are able to turn a challenge into an opportunity by collaborating in a spirit of togetherness," he said.
According to him, the full support of the Indonesian government can have a positive impact on PLN. With this loan agreement in the PLN loan portfolio, it can increase the portion of the direct lending loan scheme portfolio with Government Guarantees of around 20% of the total outstanding PLN loans.
"From now until 2030, we need around USD 35 billion for capex (capital expenditure / capital expenditure) in order to build 51.6 percent of power plants originating from NRE," explained Darmawan.

The signing of this loan guarantee agreement is a follow-up to a funding commitment from the Asian Development Bank (ADB) amounting to USD 600 million by the end of 2021. This financing is also one of ADB's major programs with the title SREAP whose main objective is to support electricity reliability with the principle of sustainability. .

Through the funding from ADB, PLN will use it for three main focuses. First, strengthening the transmission network in West Java and Central Java and modernizing electricity infrastructure. Second, increasing the use of clean energy, such as solar PV and potential EBT projects. Third, to improve the quality of the company's financial management.

Back