Tapioca giant to build power plants

IDX-listed PT Budi Starch and Sweetener Tbk, one of the world?s largest tapioca starch producers, is developing a coal-fired power plant and biogas power plant near its factories in Lampung to help reduce future electricity cost following higher electricity tariffs set by state-owned electricity firm PLN, Kontan reported on Saturday.

?Electricity from alternative generators is cheaper than electricity from PLN whose tariffs keep increasing,? said Sudarmo Tamin, Deputy President Director of the company.

The paper said that the company invests Rp 100 billion for the coal-fired power plant, and Rp 20 billion for the biogas plant, the funding of which taken from the company?s 2014 capital expenditure plan of Rp 350 billion.

The paper, however, did not say the capacity of the two planned power plants, and when they will be completed. (*)