Sinar Mas unit aims to expand its electricity business

The well diversified conglomerate Sinar Mas Group aims to expand its foothold in the country?s power generation business. Through its IDX-listed unit PT Dian Swastatika Sentosa Tbk (DSSA), which is engaged in coal mining, trading, and electricity production, through its recently set up subsidiary PT DSSE Energi Mas Utama (DSSE-EMU) aims to expand its power plant portfolio, Kontan daily reported on Wednesday.

In an interview with Dian Swastatika Director Hermawan Tarjono, DSSE-EMU will be transformed to become the parent of PT DSSP Power Sumsel, DSSA?s unit engaged in the development of a 2x150 MW coal-fired power plant in South Sumatra. The US$400 million power plant project is expected to begin operation in 2015. Once in operation, the electricity business will account for 15 percent of DSSA?s revenue.

Hermawan said that DSSE-EMU is also participating in a tender held by state-owned electricity firm PLN to develop and operate a 2x50 MW coal-fired power plant in Kendari, Southeast Sulawesi. (*)