IP disqualified in Jailolo geothermal tender

PT Indonesia Power (IP), a subsidiary of the state-owned electricity company PT PLN, has been disqualified in a tender to develop a 75-MW geothermal field in Jailolo in West Halmahera, North Maluku for its failure to meet the administrative requirement.

With the disqualification of IP, only two companies; IDX-listed firm PT ATPK Resources Tbk, and Star Energy have the chance to win the tender which was opened last month.

Sugiharto Harsoprayitno, the director of geothermal and ground water development at the Ministry of Energy and Mineral Resources, said in Jakarta on Tuesday that IP was qualified because it failed to provide a commitment guarantee for the development of the geothermal field.

Separately, IP?s president director Tony Agus said that it was not a problem for the company for not being able to win the Jailolo geothermal field because the company had already won a tender to develop the Tangkuban Perahu geothermal field in West Java.

?We would instead focus on the Tangkuban Perahu field which has the potency to generate power supply of 220 megawatt,? he said, adding that developing a geothermal plant is relatively more expansive because each megawatt of the power supply to be produced will require investment of Between US$2.5 million and $3 million.

Besides the Jailolo geothermal field, the ministry has offered seven other geothermal fields tender. They include the Seulawah Agam geothermal field (160 MW) in Aceh Darussalam, the Telaga Ngabel (120 MW) in East Java, the Gunung Ungaran (50 MW) in Central Java, the Gunung Tampomas (50 MW) in West Java, the Cisolok-Cisukarame (45 MW) in West Java, the Jaboi (50 MW) in Aceh and the Sokoria (30 MW) in East Nusa Tenggara. (Bernard)