Berau power plant to be built soon

A consortium of companies led by PT Indonesia Power is ready to start the construction of the 12-megawatt coal-powered power plant in Berau regency, East Kalimantan, Bisnis Indonesia daily reported on Thursday.

Indonesia Power president Firdaus Akmal said the consortium, that includes the Agency for Technology Research and Application (BPPT), the Berau administration, and coal mining company PT Berau Coal, currently is conducting a feasibility study for the US$12 million power plant.

"The feasibility study is expected to be completed in a one-month time," Firdaus said, adding that after the feasibility study, the consortium would start the construction of the power plant, that is expected to run for one to one and a half years.

Firdaus said his company would develop the operational system for the power plant, local administration would serve all the infrastructure, BPPT provides technological advise and PT Berau Coal supplies low-grade coal to the power plant.

Berau Coal president Jeffrey Mulyono said that the company would also act as the buyer of the electricity.

He noted that his company did not demand any compensation from low-grade coal it would supply to the power plant, as low-grade coal had no economical value to the company. Such coal has thus far practically been dumped as waste. (*)