Indonesia’s Electricity Firm Signs Loan Deal With China Bank

Text of report in English by official Chinese news agency Xinhua (New China News Agency)

JAKARTA, Jan. 31 (Xinhua) – Indonesia’s state-run electricity firm PT PLN has signed a loan agreement worth 615 million US dollars with China Exim Bank to finance the construction of two power plants in Java, local press said Thursday.

Under the agreement, the bank will provide loans of 330.8 million dollars for the 600-megawatt (MW) Suralaya coal-fired power plant in Banten, and 284 million dollars for the 600-MW Paiton coal-fired power plant in East Java.

The loans will be insured by Sinosure, the Chinese Export Credit Agency, and backed by a full guarantee by the Indonesian Finance Ministry, reported national newspaper The Jakarta Post.

Finance Minister Sri Mulyani Indrawati, who witnessed the signing Wednesday, said the government viewed China as “an important supplier and, increasingly, as an important financier for (coal- fired plant) projects.”

The government is continuing to implement its aggressive infrastructure development which is expected to provide Indonesia with additional power supply from 35 new coal-fired power plants.

Most of the projects are scheduled to come online in 2009 and 2010 and have named Chinese companies as the contractors.

Originally published by Xinhua news agency, Beijing, in English 0505 31 Jan 08.

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