Four Japanese firms, Adaro compete for PLTU Jawa-5 project
Wednesday, September 21 2016 - 12:54 AM WIB
Four Japanese companies including Mitsubishi, Mitsui, Marubeni, and Sumitomo, and IDX-listed PT Adaro Energy Tbk are competing to become a partner of PT Indonesia Power (IP), a subsidiary of state-owned power firm PT PLN, to develop the 2x1,000 MW PLTU Jawa-5 coal-fired power plant project.
?The five companies are competing to become IP?s partner in Jawa-5 project,? the source told Petromindo.com on Tuesday.
IP Operational Director Adi Suprijono could not confirm this, saying that he has not yet obtain such information.
PLN President Director Sofyan Basir said early this month the company has appointed IP to develop the project to help ensure it could be completed in 2019 as targeted by the government. He also indicated that PLN preferred Japanese firm to partner with IP to ensure ?balance? in the power plant sector in Java, which has been dominated by Chinese firms.
The decision to directly appoint IP was protested by Interim Minister of Energy and Mineral Resources Luhut Panjaitan, who insisted that the project, located in Banten, must be offered to independent power producers via tender as stated in the 2016-20025 PLN?s Electricity Procurement Business Plan (RUPTL).
Sofyan said that according to Presidential Regulation No 4/2016 on the acceleration of infrastructure projects, PLN can directly appoint its subsidiary for the project as long it holds a 51 percent interest. Therefore, he said, Indonesia Power will team up with a partner in the Jawa-5 project.
Tender process for the PLTU Jawa-5 project was entering the final stage when PLN halted the process and appointed Indonesia Power instead. A strong candidate to win the project was a consortium led by China Oceanwide with members including PJB and Shanghai Electric Power. PJB is a subsidiary of PLN.
Editing by Reiner Simanjuntak