Berita

The government has planned a Subsidiary Loan Agreement (SLA) budget of Rp. 12.991,7 billion for 2009. Of this amount, Rp. 11.096,2 billion is allocated for PT PLN, Rp. 1.131,2 billion for PT PGN, while the remaining Rp. 764,3 million is set for other purposes.

The budgeting committee of the House of Representatives have agreed on a Subsidiary Loan Agreement towards eligible regional government / companies after meeting with the Minister of Finance. Subsidiary Loan Agraament for PT PLN and PT PGN will need to be discussed beforehand with the Minister of Energy and Mineral Resources, PLN and PGN in order to receive clear information on its worthiness.

Subsidiary Loan Agreement is the disbursement of foreign loans which is handed down to state and regional owned bodies, and regional governments (according to Article 23 of Law No. 17 / 2003). In order to improve its transparency and accountability, SLA is classified separately from other loans in the state budget.

PT PLN shall use the SLA funds to fund powerplant and transmission station construction projects in order to fill national electricity demands. These projects include the repowering of Muara Karang powerlant, rehabilitation and gasification of Semarang powerplant, construction of several powerplants in North and South Sulawesi, and the construction of transmission lines and main relay stations to increase the capacity and overall system reliability.

PT PGN shall use the funds to expand the piping network from South Sumatera to West Java. This network shall cover a distance of 1039 Km and is expected to supply 479 million cubic gas per day, equivalent to 14 million litres of Diesel oil per day. PGN shall connect 353 industrial and commercial customers, opening up 170.000 jobs.