PLN borrows land from Sinar Mas to build infrastructure facilities

State-owned electricity company PT PLN on Friday signed an agreement with two companies under the Sinar Mas Group to borrow and use a total of 11.9-hectare land located in the Deltamas Mandiri township and the Karawang International Industrial Center, in Karawang West Java, Investor Daily reported on Saturday.

The paper quoted Nasri Sebayang, PLN Director for West Java region, as saying that the utility company would develop infrastructure facilities in the location including two sub-stations each with capacity of 500 kV and 150 kV, and 32 transmission towers.

The electricity infrastructure facilities will help improve power supply to the industrial and township areas. The availability of power supply is seen as a crucial factor to attract tenant investors to the industrial areas. Land acquisition has been seen as a significant problem for PLN in developing the required electricity infrastructure facilities. (*)