Indika backs down from mega power project

By Thomas R. Sembiring

IDX-listed energy company PT Indika Energy Tbk has decided to back down from a planned 1,000 MW power project in Cirebon, West Java, as its current financial condition does not make it possible for to participate in such huge project.

?For the (planned) 1,000 MW power project in Cirebon, the company will not be involved,? said Vice President for Corporate Finance and Investor Relations Retina Rosabai.

Retina said that the project is estimated to cost about US$1.4 billion.

As previously reported by this portal, Indika President Director Wishnu Wardhana said the company was looking to develop a 1,000 MW power plant in Cirebon under a consortium which include foreign investors from Japan and South Korea.

Indika has 20 percent stake in Cirebon Electric Power, which operates a 660 MW power plant in Cirebon. Marubane Corporation owns the biggest stake of 32.5 percent, followed by Korea Midland with 27.5 percent, and the remainder held by another South Korean firm Santan Corporation.

Editing by Reiner Simanjuntak