Power, ethanol, CPO plants start construction in E Kalimantan

Construction of a power plant, an ethanol plant, and a crude palm oil (CPO) plant at the Maloy Batuta Trans Kalimantan Special Economic Zone (or KEK MBTK) in Kutai Timur Regency, East Kalimantan Province, officially started last week following an inauguration ceremony on May 5 led by East Kalimantan Governor Awang Faroek.

The provincial administration said in a statement that a consortium comprising of PT Maloy Energi Investama, PT Moa Maju Kreasi Utama, PT Maloy Niaga PLTU 1 and PT Maloy Niaga PLTU 2 will develop a 2x30 MW at the KEK MBTK to provide electricity supply for industries there.

The consortium has allocated US$100 million for the project. The project is part of the planned total 2x125 MW power plant project worth $500 million to be developed by the consortium.

Meanwhile, the statement said that Switzerland?s ProCone GmbH will develop an ethanol plant with installed production capacity of 240,000 tons per year, an $800 million coal gasification project to process low rank coal resources in the province.

Editing by Reiner Simanjuntak