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Blawan Ijen geothermal project in Indonesia secures $28m in working capital funding

Project work on Blawan Ijen project site, East Java (source: Medco Energi)
Alexander Richter 12 Oct 2020

PT Medco Power Indonesia has secured working capital funding of around $28 million for its Blawan Ijen geothermal project in Indonesia, a joint project with Ormat Technologies.

As reported by PanasBumi News in Indonesia, PT Medco Power Indonesia has received funding commitment by national banks, among them BNI Syariah.

The bank will immediately disburse IDR 400 billion (around USD 28 million) for working capital following signing of the financing agreement between BNI Syariah and Medco in late September 2020.

This working capital financing is intended for corporate funding as additional working capital and operational costs for PT Medco Power Indonesia.

SEVP Business SME and Commercial BNI Syariah Babas Bastaman said the commitment to renewable energy is in accordance with the mandate of the Financial Services Authority Regulation No. 51 / POJK.03 / 2017 dated 18 July 2017 concerning the Implementation of Sustainable Finance.

The company, he continued, welcomes the collaboration with PT Medco Power Indonesia, which is known as a leading company in the renewable electricity industry sector, such as geothermal power plants, mini hydro and solar power.

“The signing of this financing ceiling agreement is a form of BNI Syariah’s support for the Indonesian government’s program in the use of renewable energy,” said Babas.

Meanwhile, the Finance Director of PT Medco Power Indonesia, Susilawati Nasution, said that Medo Power Indonesia is currently conducting Ijen geothermal utilization activities.

“The power plant to be developed is 110 MW with an operating target of 2023.

The signing of the financing agreement was carried out by PT Medco Power Indonesia’s finance director Susilawati Nasution and BNI Syariah Commercial Division Leader Daryanto Tri Sumardono.

Also witnessing in this agreement, Head of Legal PT Medco Power Indonesia, Ibnu Nurzaman, Corporate Finance Manager of PT Medco Power Indonesia Andi Fajar Rahmawan and Deputy Head of the Commercial Division of BNI Syariah Andry Widiyanto.

As is known, the Ijen geothermal power plant (PLTP) was built by Medco through its subsidiary Medco Cahaya Geothermal and its partner Ormat Geothermal. The exploration well drilling campaign for the project started in March 2020.

The collaboration between Medco and Ormat has successfully built the Sarulla PLTP with a capacity of 330 MW in Sarulla, North Sumatra.

Source: PanasBumi News