Sumalindo Lestari in talks with foreign investors to develop coal fired power plant

Timber company PT Sumalindo Lestari Jaya Tbk is talking with foreign investors to jointly develop a coal fired power plant that will supply electricity for its factory in East Kalimantan.

Sumalindo said in the recent statement to the Jakarta Stock Exchange that the plan to build a power plant was a mid-term program aimed to reduce the higher fuel costs of its operation. The statement, however, did not disclose the size of the proposed power plant.

According to the statement, Sumalindo consumes between 2.7 million and 3.0 million liters of diesel oil per month. In the past, the firm spent about Rp 18 billion for the fuel at the price of Rp 2,200 per liter. However, with the price having been increased to Rp 6,000 per liter, the firm have to pay an extra cost of between Rp 10.3 and Rp 11.4 billion per month for fuel consumption.

Sumalindo said the cooperation with the foreign investor for the development of the coal-fired power plant would materialize next year. (Robert)