Astra to build three power plants worth $600 million

PT Astra International Tbk through its subsidiary in infrastructure sector PT Astratel Nusantara plans to build three power plants with total investment of about US$600 million in the next few years as part of the company?s expansion program into power sector.

?We will build one hydropower plant and two coal-fired power plants. It is difficult to calculate the actual total value of the projects but it is estimated to be about US$ 600 million,? Astra?s director Angky Tisnadisastra said in Jakarta on Thursday.

Angky, who is also the president director of Astratel, declined to go into futher details but said that Astratel will team up with strategic partners to build and operate the power plants.

He said that the power generation business would support Astratel?s existing business activities such as the development of toll roads and other logistics activities.

Meanwhile, Astra?s President Director Prijono Sugiarto said that the development of the power plants especially the coal-fired power plants could create a business strategy with Astra?s other existing subsidiary PT United Tractors Tbk which is also involved in coal mining business. (*)