Adhi Karya expands into electricity business

IDX-listed construction company PT Adhi Karya Tbk will build a power plant with capacity of 2 x 55 megawatt as part of the company?s business expansion agenda into electricity sector, Investor Daily reported on Monday.

The company?s president director Kiswodharmawan said in Jakarta last week that the company planned to inject at least Rp 2.7 trillion in investment for the construction of the power plant. He said that the company would cooperate with PT Pembangkitan Jawa Bali (PJB) and othe private national company to jointly build and operate the power plant.

?I am still unable to unveil the location of the project. But, for sure, our share in the project will reach 55 percent. The other 45 percent will be equally owned by the two partners,? he added.

Kiswo said that the indepedent power producer (IPP) project would be the first for the company in the electrictity sector. At present, Adhi is involved as a contrator for the construction of a number of power plant project.

Kiswo hoped that the construction of the power plant could be started this year so that the power plant could begin commercial operation by the end of 2014. (*)