PTBA to build power plant in Lampung

By Thomas R. Sembiring

IDX-listed coal giant PT Bukit Asam Tbk (PTBA) has expressed interest to build a 2x600 MW coal-fired power plant in Lampung as the company diversifies into power generation business.

PTBA President Director Milawarma said the government had earlier asked the company?s interest in developing the project, which will be located at a planned industrial area in Lampung, where the company operates a coal port linked with a railway to its coal mine site in South Sumatra.

?We have expressed our interest because it would be located near our port infrastructure,? said Milawarma.

He said, however, it was still unclear whether PTBA would act as independent power producer in the project, or the project would be given as a special assignment for the state-controlled coal firm.

Assuming that investment requirement per MW at US$1.1-1.2 million, total investment for the Lampung power plant project is estimated at $1.32-1.44 billion.

Milawarma said that if construction could start next year, the power plant project could be completed in 2018.

Editing by Reiner Simanjuntak