ABM Investama to bolster power generation business

By Tri Subhki R

IDX-listed integrated energy company PT ABM Investama Tbk (ABM), through subsidiary PT Sumberdaya Sewatama, aims to bolster its power generation business over the next five years amid strong domestic demand.

ABM President Director Andi Djajanegara said in a statement Thursday that it was eying between 5-10 power plant projects with a capacity of 15-400 MW, both coal fired and renewable energy plants, over the next five years period.

He added that the company will also increase electricity production in Aceh as it anticipates its coal concession in the province will start production in the second half of 2014.

Andi said that the decision to expand the power generation business was made to meet growing domestic demand. ?Opportunity in this sector remains huge,? he said, pointing out that demand in the main Java-Bali system alone over the next 10 years is projected to increase to 375 Terra Watt Hour (TWH) in 2022 from 144 TWH in 2013, or an annual growth of 7.6 percent. He added that according to government data, electricity demand growth in the eastern part of Indonesia is much higher at 11.25 percent per year.

Editing by Reiner Simanjuntak