PLN finally decides location for PLTU Jawa-5 project

State-owned electricity company PT PLN has finally decided the 2x1,000 MW PLTU Jawa-5 coal-fired power plant project will be developed on a 200-ha land in Suralaya Village, Merak, Cilegon, Banten Province, Kontan reported on Monday.

The paper quoted PLN Procurement Director Supangkat Iwan Santoso as saying that after obtaining the required land, construction of the Rp 30 trillion project could be completed in 2019 as targeted by the government.

He said that the location for the PLTU Jawa-5 project is near the existing 3,400 MW Suralaya coal-fired power plant, operated by PT Indonesia Power (IP), a subsidiary of PLN.

PLN has also appointed IP to develop the PLTU Jawa-5 power plant project, and Supangkat claimed that the decision has obtained approval from the Ministry of Energy and Mineral Resources.

He added that being close to the Suralaya power plant, the PLTU Jawa-5 power plant project can benefit from utilizing existing supporting facilities at Suralaya, thus allowing IP to speed up construction project and obtain greater efficiency.

IP is expected to have up to 51 percent stake in the PLTU Jawa-5 project, with the remainder to be allocated for private investors. As has been reported by this portal, quoting a source, four Japanese firms including Mitsubishi, Mitsui, Marubeni, and Sumitomo, and IDX-listed coal giant PT Adaro Energy Tbk are competing to become IP?s partner in the PLTU Jawa-5 project. (*)