The Japan Bank for International Cooperation (JBIC) and other financial institutions will provide syndicated loans totaling $539 million (approximately 57 billion yen) for Indonesia’s geothermal power generation project. Marubeni and Tohoku Electric Power Company will also provide funding. This will be a concerted effort to export Japanese infrastructure to provide strong support to Indonesia’s bid to increase its power generation capacity.
The geothermal power plant will be built in the southern part of the island of Sumatra. Construction work will start in summer 2018, targeting completion by the end of 2020. It will have an output capacity of 98,000 kilowatts. Electricity generated at this facility will be sold to the state-owned power company PLN over 30 years.
The JBIC, the Asian Development Bank, and three Japanese megabanks will participate in the syndicated loan for the construction and other expenses of the power plant. A local joint venture funded by Marubeni and Tohoku Electric will take charge of construction, management, and all other aspects of the operation of the power plant.