Sarana Pembangunan plans to build gas-fired power plant

PT Sarana Pembangunan Palembang Jaya (SPPJ), a South Sumatra administration-owned company, will build a gas-fired power plant with a capacity of 20 megawatts at an investment commitment of about US$16 million, the company official said.

Company director Bahder Johan said Friday was quoted by The Jakarta Post as saying that five local investors had shown interest in funding the plant and on completion it would be able to provide electricity to a predicted 14,000 households.

He said SPPJ had developed a partnership with state-owned electricity company PT Perusahaan Listrik Negara (PLN) for the distribution of its electricity output.

The report did not give further details.

The power plant would be built at an 8,000-square-meter plot of land in Boom Baru 3 Ilir sub-district, Palembang, South Sumatra.

General Manager of PLN?s Palembang office Dodoh Rahmat said despite additional electricity from the company, PLN could not guarantee no blackouts due to a lack of electricity supply in the region. (*)