Govt. disbursed IDR1.4 trillion loan for green energy

Jakarta – Three state-owned enterprises (SOEs), PT PLN (Persero), PT Pertamina (Persero) and PT Sarana Multi Infrastruktur (SMI), received loans totaling IDR 1.4 trillion from the Ministry of Finance. Quoted from the 2023 Macroeconomic Framework and Principles of Fiscal Policy (KEM PPKF), these funds are forward loans for projects (project loans).

Special Staff to the Minister of Finance, Yustinus Prastowo said in an official statement last month that the loans were sourced from foreign loans made by the central government through the Directorate General of Financing and Risk Management (DJPPR) and then lent back to SOEs. “This loan extension is carried out in a Subsidiary Loan Agreement which is carried out at the Directorate General of Treasury,” he said.

Meanwhile, there are seven SOE project loans that have received loan funding based on the 2023 KEM PKF. The seven projects are run by PLN (2 projects), Pertamina (1 project) and PT SMI (4 projects). The infrastructure and electricity development included in the financing includes the completion of new renewable energy (NRE) based power plant projects such as Hydroelectric Power Plants and Geothermal Power Plants.

These projects support the achievement of the NRE mix target of 23% by 2025. Furthermore, this loan extension is also a form of developing innovative financing and a green economy, especially in tackling the impacts of climate change and the Covid-19 pandemic. For example, the funding projects implemented by PT SMI are used for the Geothermal Resource Mitigation project, the Regional Infrastructure Development Fund, and the SDG Indonesia One-Green Finance Facility (SIO-GFF). (Hartatik)

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