Japan's Sumitomo has taken over Tanjungjati B power project

Japan's business giant Sumitomo Corporation has partly taken over the delayed Tanjungjati B power project because the company has spent at least US$800 billion for the project, PLN's president Kuntoro Mangkusubroto has said.

"Sumitomo has in fact started the takeover against the Tanjungjati power plant as the company has spent about US$800 million for the plant," he was quoted as saying by Kompas on Wednesday. "But the company received a little respect from the government," Kuntoro said when he was asked to comment media reports on the government's plan to offer the Tanjungjati B power project to Sumitomo.

Coordinating Minister for Economy Rizal Ramli said on Monday that the offer was formally conveyed to Sumitomo's president during the latter's meeting with him. "We hope the offer will be accepted by the Japanese company," the minister told reporters following the meeting.

The Tanjung Jati power project is one of the country's large scale power projects which were delayed due to the government's retrenchment program to cope with the economic crisis which hit the country late in 1997. The project located in Jepara, central Java is 60 percent completed.

Kuntoro said that Sumitomo took part in the Tanjungjati B power project in cooperation with PT Hi Power Tubanan. "Sumitomo than took over all the works from PT Hi Power," Kuntoro said without elaboration. (*)