Indonesia Power to team up with local governments

PT Indonesia Power (IP), a subsidiary of state owned electricity company PLN, will team up with provincial administrations of East Kalimantan, Jambi and East Nusa Tenggara (NTT) to build mini power plants in the respective provinces, Bisnis Indonesia reported on Thursday.

IP?s president Firdaus Akmal said in Jakarta on Wednesday that three power plants which would be built in cooperation with the three local governments would be located in Sangatta, East Kalimantan, Sorulangan in Jambi and in Kupang, NTT.

"The total investment for the three power plants will reach about US$60 million," he said, adding that the construction of the Sangatta power plant which would have a generating capacity of 2 x 7 MW would be started within the next 15 months. The total investment in this power plant is expected to reach US$15 million.

According to Firdaus, the steam power plant which will be built in Kupang will have a generating capacity of 2 x 15 MW. The coal which will be used for the power plant will be supplied from Kalimantan.

He said that the mini power plant to be built in Sorulangan would have a generating capacity of 2 x 6 MW. The total investment for this plant is expected to reach bout US$12 million.

The local governments, through their respective companies, will jointly own the power plants with ownership of between 15 percent and 30 percent. According to Firdaus, about 30 percent of the investment for the three mini power plants will come from IP?s internal funds and the remainders would be financed by the local governments? equity and other sources. (*)