Indika plans to build power plant in Cikarang

Coal miner PT Indika Inti Corporindo is planning to build a 2x300 MW coal-fired power plant in Cikarang, West Java to meet the increasing demand for power on the Java-Bali power grid.

A source at the company said the company was now in talks with state-owned electricity company PT PLN on the power project.

?We are optimistic that the deal to finance the project is expected to be closed this year and the development of the power plant could be started late this year or early next year,? the source told Petromindo.Com on Monday.

According to him, the engineering, procurement and construction (EPC) for the project will be carried out by China Huadian.

Last year, Indika bought a 41 percent stake in PT Kideco Jaya Agung, an East Kalimantan-based coal producer, from South Korean chemical giant Sam Tan Corp. Sam Tan still holds the remaining 49 percent stake.

Kideco operates a huge coalmine in Pasir regency, East Kalimantan, with production capacity of 18 million tons per annum. (Alex)