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Japan Bank for International Cooperation (JBIC) has signed a loan agreement totaling up to Y30.4bn with the government of the Republic of Indonesia to finance exports for a power plant project.


The loan was co-financed with private financial institutions, including Bank of Tokyo-Mitsubishi (agent), Sumitomo Mitsui Banking Corporation, and Tokyo branches of BNP Paribas, HSBC, ING, and Standard Chartered.
The project consists of constructing a natural gas-fired combined-cycle power plant with a capacity of 740MW in Cilegon district, western Java.


The export credit will finance the export by Mitsubishi Corp of power generation equipment, including gas turbines, steam turbines and generators, to PLN, a state-owned power company that will implement the project as the project executor.

Power demand in Indonesia is growing rapidly.  In particular, demand in the Java-Bali power system that covers the capital city of Jakarta is projected to increase 6.8% annually through 2010. This has raised concerns over the emergence of serious power shortage.  Thus, there are strong expectations that this project will address and ameliorate such a situation.


Furthermore, JBIC’s contribution to the country’s stable supply of power through loan provision for this project will support the local business operations of a number of Japanese firms operating in Indonesia.

JBIC has supported Indonesia’s power sector over the years, not only by providing export loans but also by combining multiple lending instruments, including ODA loans. Aside from these financing operations, JBIC has been making comprehensive efforts to help resolve problems the country is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders.