The syndication agreement was signed on Friday between PT PLN and PT Bank Mandiri, PT Bank Negara Indonesia, PT Bank Central Asia, and PT Bank Syariah Indonesia. In addition, PLN also secured a bilateral loan facility from State development financier PT Sarana Multi Infrastruktur (SMI).

This green financing facility is carried out through conventional and sharia schemes. The Syndicated loan facility consists of a conventional scheme of Rp 9 trillion or US$ 581 million and a sharia scheme of Rp 1 trillion or US$ 64 million. Meanwhile, the Bilateral loan facility consists of a conventional scheme of Rp 1 trillion or US$ 64 million and a sharia scheme also of Rp 1 trillion.

The 10-year financing facility will be used to fund electricity infrastructure projects and other programs that meet the eligibility criteria based on the PLN Green Financing Framework.

PLN President Director Darmawan Prasodjo said the support from National Financial Institutions is proof of Indonesia's current strength in realizing the energy transition. PLN as a key player in Indonesia's energy transition is committed to accelerating the development of green energy with the support of all parties.

"The good cooperation between PLN and the National Financial Institution is proof of unity and synergy with all components in Indonesia in accelerating the energy transition. Currently, PLN has various strategic steps to be able to encourage Indonesia as a green country," Darmawan said on Monday.

PLN Finance Director Sinthya Roesly explained that PLN needs a variety of financing cooperation in order to be able to carry out energy transition projects. The Green Loan secured by PLN is a form of trust from the National Financial Institutions to PLN in carrying out strategic programs.

"One of the keys to achieving the joint target of Net Zero Emissions (NZE) in 2060 is low-cost loans as realized in today's cooperation. Going forward, PLN's investment needs are still quite large. This cooperation is also an important moment for PLN, in addition to green loans, we will also explore other financing schemes to support the energy transition," said Sinthya.

In this syndication, apart from being a Syndicated Creditor, Bank Mandiri is also appointed as a green loan coordinator in providing green loan facilities to support PLN's activities in the energy transition efforts towards renewable energy.

Senior Executive Vice President for Corporate Banking of Bank Mandiri, Arief Ariyana, said the collaboration is a real support for PLN in accelerating electricity infrastructure projects and other programs.

"Through this collaboration, we encourage the development of clean energy in Indonesia to accelerate the energy transition. This financing facility support is also a form of banking commitment that encourages the implementation of sustainable financing through the integration of environmental, social and governance aspects in our business activities," said Arief Ariyana.

Head of SMI's Sharia Business Division Arief Subekti said that PLN is the main partner of SMI, therefore the invitation for participation given to SMI in supporting PLN's program related to green financing is very special.

"Moreover, with SMI's position as a country platform manager in the energy transition, there are so many things that our stakeholders expect to work together, and we see PLN as the main partner in the future Human Development Index (HDI) scenario," said Arief Subekti.

This loan agreement shows the support of National Bank and Non-Bank Financial Institutions to PLN in implementing concrete steps to develop clean energy and accelerate the energy transition. This support is in line with the mission of the National Bank and Non-Bank Financial Institutions, which is to support the realisation of NZE by 2060 in accordance with Indonesia's commitment to the Climate Change Conference (COP) in Glasgow, Egypt, and Dubai.