Bakrie seeks lenders for Tanjung Jati power project

IDX-listed firm PT Bakrie & Brothers (BNBR) will conduct roadshow to South Korea next week in a bid to find financing for its Tanjung Jati A coal-fired power plant project in Java.

CFO Eddy Soeparno said that the project, which has been on hold since 1996, would require investment of US$2 billion. South Korean company Samsung C&T Corporation has agreed to team up with BNBR in a JV to develop the 2x600 MW power plant project. Composition of shares in the JV has yet to be discussed, but BNBR will have majority share, Eddy said as quoted by Kontan daily.

BNBR has been granted right to develop the power plant since 1996 together with Japan?s Tomen Power Corp and a local company PT Maharani Paramita. The three companies formed a JV company called PT Tanjung Jati Power Company. Tomen and Maharani later quit the project, prompting BNBR to pick Samsung as new partner.

BNBR is controlled by the powerful Bakrie family, who is also controlling IDX-listed top coal miner PT Bumi Resources Tbk.(*)