PTBA invites Malaysian investors to participate in $900M projects

State-owned coal producer PT Tambang Batubara Bukit Asam Tbk (PTBA) has invited investors from Malaysia to invest in its three projects worth of US$900 million, the Bisnis Indonesia newspaper reported in its Saturday edition.

PTBA?s director A.C. Purba said his company currently had only $100 million in cash, which is not enough to finance the projects. That?s why BA is inviting foreign investors to participate in the projects.

?With 30 percent of the projects' costs expected to be covered using internal cash and 70 percent using loans, the participation of foreign investors is necessary to complete the projects,? Purba told the paper in Kuala Lumpur on the sidelines of ?Investment Conference on Indonesia" on Friday.

The first project is aimed at building $200 million railway line extending from its coal mines in Tanjung Enim, South Sumatra province to the Tarahan port in Lampung province and Tanjung Enim to the Kertapati jetty port in South Sumatra's capital of Palembang.

?We are in negotiating process with state-owned railway firm PT Kereta Api Indonesia for realization of the project to boost the coal capacity delivery. And we invite Malaysian investors,? Purba said.

The second project is aimed to build a 2x100 MW mine-mouth power plant in Banjarsari, South Sumatra, which will be completed by 2008.

The third project is a coal-fired power plant in Pranap, Riau. This plant would have a 2x250 MW and would cost $500 million. (*)