DSSA sets up new unit to grab new power project

By Tri Subkhi R.

IDX-listed energy and coal mining firm PT Dian Swastatika Sentosa Tbk (DSSA) has recently set up a new indirect subsidiary that would participate in future power plant tenders held by state-electricity company PT PLN.

DSSA Director and Corporate Secretary Hermawan Tarjono told Petromindo.com Thursday that the company was hoping to get at least one additional coal-fired power plant project this year as it seeks to increase revenue contribution from the power plant business.

Hermawan said that the new unit called PT DSSP Power Sumsel Dua was set up by DSSA subsidiaries PT DSSP Power Sejahtera and PT DSSP Power Utama with paid up capital of Rp 400 billion.

DSSA is nearly completing construction of the Sumsel-5 2x150 MW coal-fired power plant in South Sumatra. The company is also planning to develop a 2x50 MW Kendari-3 coal-fired power plant in Southeast Sulawesi, with construction expected to start this year, and completed in 2018.

The power plant business currently accounts for 9.7 percent of DSSA?s total revenue. The company will have a combined capacity of 700 MW when the Sumsel-5 and Kendari-3 have been completed. The Sinar Mas Group, DSSA?s holding, aims to have a combined 1,100 MW of power plants until 2020.

Editing by Reiner Simanjuntak