PLN asked to soon realize its plan to build 11,600 MW coal-fired power plants

Vice President Muhammad Jusuf Kalla has asked state owned electricity company PLN on Thursday to start its fast-track program to build coal-fired power plants with total capacity of about 11,600 MW to replace the costly oil-based power plants now being operated by the company.

The Vice President's request was made during a limited cabinet meeting on Thursday which was among others attended Chief Economic Minister Boediono, State Minister for State Owned company Sugiharto by PLN's president director Eddie Widiono.

"PLN has been assigned to build coal-fired power plants with total capacity of about 3,300 MW as part of the plan. The construction of other coal-fired power plants which would produce the remaining power supply of about 8,300 MW would be offered to private investors," PLN's president director Eddie Widiono told reported after the meeting.

Eddie said that PLN was currently preparing the tender for the construction of some of the projects. "We are actually allowed to directly appoint the investors to build the coal-fired power plants. But for the sake of obtaining the best prices, we have decided to auction the projects," he added.

The power projects which would be tendered would include three coal-fired power plants each with a capacity of 600 MW in locations in Java, three coal-fired power plants with a capacity of 200 MW in Sumatra and two coal-fired power plants with a capacity of 50 MW and 130 MW in South Kalimantan. (*)