Indonesia Power may directly appoint coal supplier

PT.Indonesia Power may cancel re-tender to supply 4 million tonnes of coal to its 3,400-MW Suralaya coal-fired power plant due to inadequacy of bidders and may directly appoint supplier(s) instead, a company official said.

The company president Abimanyu Suroso told reporters that after re-tendering process, the only eligible bidders are Kalimantan coal miners PT.Kideco Jaya Agung and PT.Berau Coal, one bidder short according to tender rule of three minimum bidders.

Abimanyu said Indonesia Power would decide next week whether to directly appoint suppliers or hold further re-tender. He said that price for the coal would be inline with the company?s budget of Rp.327, 000 (US$=Rp.9, 100) per tonne.

He said the coal would be delivered starting September this year for one year.

Indonesia Power is searching for new supplier after main supplier PT. Tambang Batubara Bukit Asam cut coal supply due to price negotiation deadlock.

Indonesia Power is a subsidiary of state electricity firm PLN.(godang)