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CORPORATE ACTION - PT Bank Maybank Indonesia, Tbk. (Maybank Indonesia) has signed a financing facility agreement with PT Pelayanan Listrik Nasional Batam (“PLN Batam”) worth IDR 588 billion at the end of August 2023 in Batam.
This financing uses the Sharia scheme Ijarah Muntahiyah Bit Tamlik (“IMBT”) for the construction of PT PLN Batam's power plant assets, a new breakthrough and the first time in the PLN Group environment.
The financing will be used by PLN Batam to carry out the construction and development of the Sekupang Gas Engine Power Plant (PLTMG) with a capacity of 50 MW.
This PLTMG will replace the Sekupang diesel power plant, which will be converted into a backup power plant. The construction of this Sekupang PLTMG is part of PLN's strategy in transitioning energy from high-emission fuel sources such as coal and oil to gas fuel and/or new and renewable energy with lower emissions.
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PLN Batam is a subsidiary of PT Perusahaan Listrik Negara (Persero) and the sole electricity provider in the Batam and Bintan areas. Currently, PLN Batam has a total capacity of its own power plants and partner/IPP power plants of 575.4 MW.
IMBT is a suitable Sharia financing solution to meet the fixed asset procurement needs of companies like PLN Batam as another option for long-term loans carried out off-balance-sheet through a lease scheme and ended with the transfer of ownership to customers.
This IMBT financing has many benefits for customers because it allows customers to carry out capital efficiently without adding long-term debt. In addition, the flexibility in the term and amount of lease payments can help companies in cash flow management.
The Director of Global Banking Maybank Indonesia, Ricky Antariksa, stated that the financing was carried out to support PLN Batam in its efforts towards decarbonization.
This is in line with the M25+ Maybank Group strategy, especially related to sustainability, to become a leading company in the field of ESG in the ASEAN region. “We are proud to be able to be a part of and take an active role in PLN Batam's efforts to transition to lower-emission energy through Maybank Indonesia's financing facilities.
This effort is in line with the strategic priorities of the Maybank Group, namely supporting emission transition efforts towards a more sustainable and low-carbon economy in order to balance the environment and society,” said Ricky.
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Ricky added, that Maybank Indonesia responds to this climate change risk with measured and directed steps through financing facilities to companies that implement low-carbon investments, in line with the Indonesian government's commitment to reducing carbon emissions.
In line with Ricky, the President Director of PT PLN Batam, Muhammad Irwansyah Putra hopes that this collaboration can contribute to the development of the electricity sector in order to drive the economy, industrial growth, and the use of electricity, especially in Batam and Indonesia in general.
“This collaboration is also a new milestone for PLN Batam where there is the implementation of Sharia and banking supervision in the business process of building and operating the Sekupang PLTMG which is funded with this Sharia fund. This Sharia funding pattern will also become a model that can be applied in the future both in the internal environment of PLN Batam and in the PLN Group environment in general,” explained Irwansyah.
On the other hand, the financing of gas power plant investment with this IMBT scheme is a manifestation of Maybank Indonesia's commitment to prioritize Islamic solutions included in the M25+ Maybank Group strategy. Through this financing scheme, Maybank Indonesia hopes that PLN Batam can manage its business with a better financial ratio.
