C. Java, C. Kalimantan governments sign MoU on power plant project

By Thomas R. Sembiring

The provincial administrations of Central Java and Central Kalimantan signed on Thursday an MoU for the development of a mine-mouth coal fired power plant in the latter province, the output of which would be distributed via an undersea cable to Central Java.

The MoU was signed by Central Java Governor Ganjar Pranowo and his Central Kalimantan counterpart A. Teras Narang in Jakarta.

Teras said that Central Kalimantan holds huge coal deposits estimated at 5.9 million tons, about 60 percent of which is considered as high calorie coal, while the remainder as low rank coal, which is quite a waste if not utilized. Low rank coal, which has little value in export market, can be used to fuel mine-mouth power plants at home.

He added that more than 90 percent of the coal requirements of coal-fired power plant in Java are shipped out of Kalimantan. If the electricity can be produced at mine-mouth power plants in Central Kalimantan and then distribute it via underwater cable to Central Java, he said consumers in the latter province could enjoy cheaper electricity.

No further details were provided about the planned mine-mouth power plant and undersea cable projects.

Editing by Reiner Simanjuntak