ASEAN KEY DESTINATIONS
Daewoo builds power plant in Sumatra
Dahlan Iskan, president director of PLN, said Daewoo would sign an independent power producer agreement on Thursday, which is the closing day of the Indonesia International Infrastructure Conference in Jakarta.
“We have already signed a power-purchase agreement with Daewoo, and we expect that construction can be completed by 2013,” the president director said on Tuesday on the sidelines of the conference.
Indonesia is hosting a three-day conference on infrastructure, organized by the Indonesian Chambers of Commerce and Industry (Kadin).
The state power company expects to raise the percentage of households that have access to electricity from 65 percent currently to 91 percent in 2019 and 100 percent by 2020. Indonesia’s power grid has 31,000 MW of available power to supply the nation’s 240 million people with electricity.
PLN has struggled to meet rising demand for electricity in the country. It has been tasked with producing 55,484 MW nationwide by 2019 in order to boost the nation’s economic growth, and it hopes to reach that level by offering 23,525 MW to the private sector through the IPP scheme.
The government has announced a 20,000 MW fast-track program that will operate in two phases and is expected to be completed by 2014. PLN has targeted generating an additional 10,000 MW by 2013 in the first phase, with the private sector expected to generate the same amount in the second phase.
In addition to the Daewoo project, Dahlan said, the government is also approaching the end of a tender process for a 2,000 MW power plant project valued at Rp 30 trillion in Central Java.
“The last bidders are four Japanese companies, along with one from South Korea and two from China,” Dahlan said. He refused to name the companies.
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