Mitsubishi may become IP?s partner in PLTU Jawa-5 project

Japan?s Mitsubishi is among of the list of candidates currently being selected by state-owned electricity firm PT PLN to become a partner of the latter?s subsidiary PT Indonesia Power (IP) in the development of the 2x1,000 MW PLTU Jawa-5 coal-fired power plant project, Kontan reported on Tuesday.

?The (would be) partner will be selected. It will not necessarily be Mitsubishi. Whoever is the best, will win,? PLN Procurement Director Iwan Supangkat told the paper.

PLN President Director Sofyan Basir said early this month the company has appointed IP to develop the project to help ensure it could be completed in 2019 as targeted by the government.

The decision was protested by Interim Minister of Energy and Mineral Resources Luhut Panjaitan, who insisted that the project, located in Baten, must be offered to independent power producers via tender as stated in the 2016-20025 PLN?s Electricity Procurement Business Plan (RUPTL).

Iwan said that according to Presidential Regulation No 4/2016 on the acceleration of infrastructure projects, PLN can directly appoint its subsidiary for the project as long it holds a 51 percent interest. Therefore, he said, Indonesia Power will team up with a partner in the Jawa-5 project.

Tender process for the PLTU Jawa-5 project was entering the final stage when PLN halted the process and appointed Indonesia Power instead. A strong candidate to win the project was a consortium led by China Oceanwide with members including PJB and Shanghai Electric Power. PJB is a subsidiary of PLN. (*)