Republic of Indonesia / Loan Insurance for Kalselteng 2 Coal-fired Power Plant Project

Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Kazuhiko Bando) has decided to provide insurance for a loan extended by a Japanese bank to finance coal-fired power plant facilities (100MW x 2units), which will be built by the Indonesian state owned electricity company PT. PLN (Persero) to expand the existing power plant facilities (65MW x 4units) in South Kalimantan, Kalimantan Island, Indonesia.

In this project, PT. PLN (Persero) awarded an EPC contractor to a consortium including ITOCHU Corporation. The consortium will supply coal-fired power generation facilities including steam turbine generators manufactured by Fuji Electric Co., Ltd. and IHI Corporation’s boilers. For the equipment being purchased by PT. PLN (Persero), Japan Bank for International Cooperation (JBIC) and MUFG’s banking arm, The Bank of Tokyo-Mitsubishi UFJ (BTMU) will provide loans, and NEXI’s insurance will support BTMU’s loan. Completion of the project is scheduled for 2020.

To meet its surging electricity demand driven by economic growth, the Indonesian government is promoting a new power source development plan for 35 GW capacity, including this Kalselteng 2 project. By providing financial support for export of Japanese equipment, NEXI expects to promote Japanese business in Indonesia and also help Japanese companies maintain and strengthen international competitiveness.

As a governmental financial institution, NEXI will continue to actively support Japanese exports.

Contact: Power Group, Structured and Trade Finance Insurance Department