PJB to take over the Banjarsari steam power project

PT Pembangkit Jawa Bali, a subsidiary of state owned electricity company PLN which is responsible for the operation of some power plants in Java and Bali, will take over the Banjarmasin coal-fired steam power plant from its sister company PT Indonesia Power, Bisnis Indonesia reported on Friday.

Bambang Isti Eddy, the director for development of Indonesia Power, confirmed on Thursday about the takeover of the Banjarsari power project by PJB. He said that PLN, as the parent company had formally transferred the right to build the US$203 million power project from Indonesia Power to PJB.

"The right to build the Banjarsari power project was given to PJB because Indonesia had already secured the right to build a steam power plant in Tarahan, East Kalimantan," Bambang said.

Bambang said that PJB would build and operate the Banjarsari steam power project in cooperation with state owned coal producer PT Batubara Bukit Asam (PT BA) and a private investor. PJB will have 20 percent interest in the project, PT BA will control 41 percent while the private investor will hold the remaining 39 percent.

PT BA is expected to provide about US$140 million or about 60 percent of the funds needed to finance the construction of the US$203 million power project. (*)