Indonesia / Loan Insurance for Jawa2 Combined Cycle Power Plant

Oct 21, 2016

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI) has decided to provide insurance for loans extended by a commercial bank for construction of a Combined Cycle Power Plant in Tanjung Priok, located approximately 10 kilometers (km) northeast of central part of Jakarta, Java, Indonesia. The plant of 800 MW capacity will be constructed by PT PLN (Persero), a power utility wholly-owned by the Indonesian Government. NEXI will provide insurance for a loan without the Indonesian government’s guarantee as well as we did for Lontar Extension Coal Fired Steam Power Plant Project in this March.

NEXI has released the creation of insurance for sub-sovereign transactions in this April ( for achieving the “Partnership for Quality Infrastructure” which is Abe, the prime minister of Japan announced in May 2015 and this is the first underwriting of insurance for loans to sub-sovereign since the clarification.

PLN will borrow funds from Japan Bank for International Cooperation (JBIC), Bank of Tokyo-Mitsubishi UFJ (BTMU) as Agent, Mizuho Bank (Mizuho), Australia and New Zealand Banking Group (ANZ). NEXI’s insurance will support the loans from Commercial Banks.

To meet its surging electricity demand driven by economic growth, Indonesia is planning to develop new power source for 35 GW capacity from 2015 to 2019, and the Jawa2 project is based on this plan. By providing financial support for export of Japanese equipment used in this project, NEXI expects to promote Japanese business in Indonesia and also help Japanese companies maintain and strengthen international competitiveness.

As Japan’s official export credit agency, NEXI will continue to actively support Japanese exports.

Borrower PT. PLN (Persero)
Insured Bank of Tokyo-Mitsubishi UFJ (BTMU) as Agent, Mizuho Bank (Mizuho), Australia and New Zealand Banking Group (ANZ)
Insured amount Equivalent to JPY12.7Billion+USD18 million
Tenor Approx. 7 years
Covered risks Political Risk (100%), Commercial Risk (100%)