Indonesia Power seek foreign investors to finance power projects

PT Indonesia Power, a subsidiary of state owned electricity company PLN, is exploring the possibility of inviting Chinese investors to jointly finance three steam-powered electricity plants which will be built in Riau and East Kalimantan, Bisnis Indonesia reported on Tuesday.

Indonesia Power?s spokesman R. Soemarsono said in Jakarta on Monday that the three steam-powered or mine-mouth electricity plants would be built in Pranap, Riau, and Kuai and Tanjung Dedap, East Kalimantan.

The construction of the three plants, which would have a capacity of 2 X 50 MW each would need total investment of US$81 million or 4.5 U.S. cent for per kWh.

"Currently, the construction of the power projects is still under s feasibility study. We are still waiting for investors? participation ? because the provincial administration would unlikely be able to solely finance the projects," he said.

Besides with the two provinces, Indonesia Power has also signed an agreement with coal producer PT Batubara Bukit Asam PT BA to build a similar power plant in the company?s coal mining area in Banjarsari, South Sumatra. (*)