AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The buyer’s credit loan agreement between JBIC and Indonesian PT PLN (Persero) has a maximum value of approximately JPY 19 billion (USD 235 million) and USD 27 million. Furthermore, the Governmental Nippon Export and Investment Insurance of Japan provided insurance for the portion cofinanced by the three private-sector Japanese banks totalling around USD 18 million.
The loan finances the Indonesian company's purchase of products such as gas turbine, steam turbine, waste heat recovery boiler and power generator from specific Japanese companies. Such products are purchased in connection with the construction of a Jawa-2 gas-fired combined cycle power plant in Indonesia.
In this context, JBIC stated: "Through JBIC’s support for the export of power generation equipment by Japanese companies, this loan will contribute to maintaining and strengthening the international competitiveness of Japanese industries, and, at the same time, it is expected to support Indonesia’s economic development by realizing steady power supply."
Buyer's credit agreements
JBIC provides direct loans named buyer’s credit to overseas importers. Loans are obtained if it finances the purchase of Japanese machinery, equipment or technology in specific eligible sectors. The Bank hereto stated that these loans are intended to “positively contribute to Japanese companies”. Further information can be found on the Bank’s website under export loans.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets and from foreign subsidiaries.
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