NEXI signs Amendment of the MOU with PT PLN (Persero)
Nippon Export and Investment Insurance
Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) has signed an Amendment of the Memorandum of Understanding Concerning Cooperation (Second Amendment) with PT PLN (Persero) (PLN), a state-owned electricity company in the Republic of Indonesia (Indonesia).
Atsuo Kuroda, Chairman and CEO of NEXI and Darmawan Prasodjo, President Director of PLN have signed the Second Amendment on March 2, 2023, on the occasion of the Asia Zero Emissions Community (AZEC) Ministerial Meeting held during March 3-4, 2023.
provided by Ministry of Economy, Trade and Industry
The Second Amendment is to the Memorandum of Understanding Concerning Cooperation concluded between NEXI and PLN on April 25, 20221, and the first amendment on November 15, 20222.
The objective of the Second Amendment is to confirm the loan terms and conditions, also the application of funds for the USD 200 million out of the total USD 500 million financing insurance support extended to PLN by NEXI, in line with NEXI’s LEAD Initiative3 launched in December 2020, to facilitate the decarbonization and energy transition in Indonesia to achieve net zero emission by the year 2060. Through the signing of the Second Amendment, NEXI intends to promote the efforts toward decarbonization in Indonesia’s electricity sector and create Japanese companies’ business opportunities in Indonesia by enhancing the relationship between NEXI and PLN.
The Second Amendment bolsters the efforts to achieve a realistic energy transition in Indonesia and aligns with the Asia Energy Transition Initiative (AETI) and the Asia Zero Emissions Community (AZEC) Concept announced by the government of Japan.
NEXI continues to actively support Japanese companies to expand their global business by reinforcing cooperation with other governmental enterprises.
Contact
Power Group, Structured and Trade Finance Insurance Department
Tel: +81-3-3512-7340
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1 NEXI News Release, April 25, 2022.
(NEXI signs MOU with PT PLN (Persero)) -
2 NEXI News Release, November 15, 2022.
(NEXI signs Amendment of the MOU with PT PLN (Persero) / LEAD Initiative Project) - 3 In December 2020, NEXI announced the LEAD Initiative to respond to the business environment with and after the COVID-19. This initiative is intended to actively promote the underwriting of projects, with a focus on contributing to global carbon neutrality, solving social issues, and achieving the SDGs. Under this initiative, we aim to underwrite insurance of total value of JPY 1 trillion by the end of fiscal 2025, while diversifying our funding sources not only from traditional capital providers, but also from institutional investors, etc.