Malaysian EXIM Bank funding Indonesian electricity projects

Will set aside funds for up to four energy projects.

The Export-Import Bank of Malaysia Bhd is in the middle of project negotiations with Indonesia in line with its target to disburse US$1.7 billion in loans this year.

CEO Datuk Adissadikin Ali said the bank sees Indonesia as a place with a big need for electricity and that is why apart from normal electricity generation we are looking at renewable energy production.

"The increase in demand would be supported by higher loan disbursements, which are targeted to grow at least 30% annually until 2015," he said.

The bank will provide US$24.4 million financing to PT Senagan Energi for the design, construction, operation and maintenance of a 10MW river hydropower plant on the Kreung Isep River in Aceh.

The project, with a total development cost of US$31 million, is scheduled to begin construction in mid-June with a target completion date in August 2015.