Indonesia Power's subsidiary ADC expands into coal production

PT Artha Daya Coalindo (ADC), a subsidiary of the state electricity supplier Indonesia Power, will develop a coal mine in East Kalimantan as part of the company's diversification program, Bisnis Indonesia reported Wednesday.

ADC's president director Munadjad said in Jakarta on Tuesday that the company which at present handles coal transportation for Indonesia Power's power plants as its main business activities, would open the coal mine in cooperation with PT Jaya Samudra Karunia.

He said that investment for the development of the East Kalimantan coal mine, which is estimated to have coal deposit of about 20 million tons, would reach about Rp 50 billion. "ADC will provide between 10 percent and 20 percent of the investment needs, the remainders would be provided by PT Jaya Samudra Karunia," he said.

As a subsidiary of Indonesia Power, ADC has secured contracts of million tons of coal to transport the coal supply to Indonesia Power's major power plants including the Suralaya power plant in Banten. Indonesia Power, a subsidiary of PLN, operates a number of power plants in Java. (*)