Wika, Krakatau Steel to build 1,000 MW power plant

State-controlled companies PT Wijaya Karya Tbk and PT Krakatau Steel Tbk plan to build a 1,000-megawatt power plant in Banten to support manufacturing industries in the province, The Jakarta Globe reported Thursday.

The cost of the project is estimated at US$1.5 billion, according to finance director of IDX-listed engineering and construction firm Wika, Aji Firmantoro. He declined to elaborate on the funding or time line for the project.

The companies expect to complete a feasibility study by the end of this year, Aji said.

IDX-listed steel maker Krakatau Steel, which owns a 150-hectare industrial estate in Banten?s Cilegon district, has agreed to provide land for the power plant.

Banten is home to several major industrial estates, and is expected to need 5,100 MW of additional power capacity by 2019, according to state utility PLN. The province currently has around 4,400 MW of installed capacity. (*)