PROJECT

Project Information & Monitoring Update

16 Dec 2020 ELECTRICITY SECTOR

Sulawesi and Nusa Tenggara Distribution 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) 1.461,2 Million
Loan Value (USD) 310 Million
Loan Tenor 15 Years
Implementation Periode 2020 - 2025
Guaranteed Debtor PT Perusahaan Listrik Negara (Persero)
Creditor / Guarantee Recipient Kreditanstalt für Wiederaufbau (KFW)
Location Sulawesi and Nusa Tenggara

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 this Project is to increase the connection up to 7.7 million subscribers and has the objectives: Contribute to sustainable economic and social development in the Eastern Indonesia region; Increasing the ratio of electrification and rural electrification in Eastern Indonesia; Improve system reliability, distribution system efficiency, and electricity services; as well as meeting the needs of electrical energy in the Nusa Tenggara and Sulawesi regions. In addition, the Project is also expected to be able to support the achievement of the national electrification ratio target of 100% by 2021.

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