Tanjung Jati B power project will be resumed next year
Thursday, December 13 2001 - 02:14 AM WIB
Source: Kompas daily, Jakarta
After being abandoned for at least four years, the country?s giant power project Tanjung Jati B in Jepara, Central Java will be resumed next year after the government and its contractors agreed on several changes in the contract, according to Coordinating Minister for Economy Dorodjatun Kuntjoro-jakti said.
In his speech during a visit to Demak, the main town in Jepara, Dorodjatun said that although the giant power project involved corruption practices in the initial stage of its development, the project would be too expensive to be closed.
The government, therefore, made a number of changes in the power contract to ensure that the power project could be resumed.
?The government does not have money to build its own power plant, and privately owned power plants such as Tanjung Jati B is important to meet the power demand in the future, particularly in Java,? Dorodjatun said.
Japan?s business giant Sumitomo Corporationm which has spent at least US$800 million for the power project, has been allowed to take over the project.
The Tanjung Jati power project is one of the country?s large-scale power projects which were delayed due to the government?s retrenchment program to cope with the economic crisis which hit the country late in 1997. The project located in Jepara, central Java is 60 percent completed.(*)