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Hydropower Program

Date : 05 September 2019


The Hydropower Program is a project that has objectives including increasing the electrification ratio in Central and Eastern Indonesia (Kalimantan, Sulawesi and Papua) by developing hydropower / PLTM in remote and isolated areas by increasing the portion of new and renewable energy generation in the national energy mix. This program is part of the 10-year PLN plan set out in the 2018-2027 Electric Power Supply Business Plan (RUPTL) and has been included in the 35 GW Program

Project Information

   Location

  Central and Eastern Indonesia Region (Kalimantan, Sulawesi and Papua)

   Loan Value

  IDR 6,904 Billion

  Debtor - Guarantee

  PT PLN (Persero)

The Government provides support to accelerate the development of strategic infrastructure in the form of Government guarantees so that SOEs can have access to finance with a relatively light scheme (equivalent to sovereign loans) from International Financial Institutions. Guarantor for this Project is the Republic of Indonesia, which is represented in the Guarantee Agreement by the Government of Indonesia through the Ministry of Finance of the Republic of Indonesia and PT Penjaminan Infrastruktur Indonesia (Persero). The guarantee payment mechanism will follow PMK No. 189 of 2015 and PMK No. 101 of 2018. Coverage coverage is the failure to fulfill all financial obligations or repayment of loan funds provided by KfW to PT PLN as stipulated in the Loan Agreement or briefly the guaranteed risk is the risk of default.

In accordance with PMK 101/2018, PLN has submitted the Guaranteed Application document to the Minister of Finance on December 14, 2018. The entire process of providing guarantees has been carried out since then in accordance with the provisions in PMK 101/2018.

The amount of the loan is EUR 294,700,000 with a tenor of 15 years and a grace period of 5 years. As stated in the KMK for the FOURTH DIKTUM Assignment, IIGF pays the collateral portion of the principal installments for the first 18 (eighteen) months after the grace period ends which includes guarantees for payment of principal installments, interest expenses and other costs in the Direct Loan Agreement. This value is an indication of the amount of collateral that will be the responsibility of IIGF with a first loss basis scheme.

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