PROJECT

Project Information & Monitoring Update

15 Dec 2020 ELECTRICITY SECTOR

Kalimantan and Maluku-Papua Distribution Network Development Project

Eastern Indonesia has enormous potential to spur economic growth sources, in sectors such as fisheries, agro-industry and tourism. However, this potential is maintained in part by the lack of major infrastructure, including electricity. One of the Government's efforts to increase the National Electrification Ratio is by running a program to electrify 433 villages in Eastern Indonesia, especially underdeveloped, frontier and outermost areas (3T) with a strategy of increasing access to electricity through expanding the electricity network.

Project Information

Project Signing December, 16th 2020
Investment Value (USD) 2,111 Million
Loan Value (USD) 600 Million
Loan Tenor 20 Years
Implementation Periode 2020 - 2025
Guaranteed Debtor PT Perusahaan Listrik Negara (Persero)
Creditor / Guarantee Recipient Asian Development Bank (ADB)
Location Kalimantan dan Maluku-Papua

Eastern Indonesia has an electrification ratio that is still below the national average. This project is part of the Government of the Republic of Indonesia Assignment in accordance with Presidential Decree No.4 of 2016. The development of this distribution network is part of the development of electricity infrastructure and as part of a long-term program as stipulated in the PT PLN 2019- 2028.

One of the targets of the project is to add connections to up to 6.7 million subscribers and has objectives to: Support the development of a power distribution network; Strengthening and expanding the distribution system; Improving the quality of life in Eastern Indonesia through the use of sustainable electricity; and promoting solar power and the use of clean energy. The project is also part of the effort to achieve the national electrification ratio target of 100% by 2021.

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