Indonesia Power, Wika awarded geothermal concessions

PT.Indonesia Power, a subsidiary of state electricity firm PLN and IDX-listed state contractor PT.Wijaya Karya (Wika) had been awarded geothermal concession in West Java, a government official said on Monday.

Director of Geothermal at the Ministry of Energy and Mineral Resources Sugiarto Harsoprayitno said that Indonesia Power was awarded Cisolok-Cisukarame and Tangkuban Prahu concessions, while Wika was awarded Tampomas concession.

The three concessions are located in West Java.

The two companies had been declared winners after offering lowest electricity price to PLN.

According to Sugiarto, Cisolok and Tangkuban Prahu have potential to generate 45 MW and 220MW, respectively, while Tampomas has the potential to generate 50MW.

He added that concession period for the three areas would be for 35 years, including 5 years to conduct detailed exploration.

The companies would be imposed 2.5 percent royalty based on electricity sold to PLN.

The companies would also be subjected to prevailing tax regime, he said. (bernard)