Pertamina, PLN sign contract to build Jawa-1 power plant

Pertamina, PLN sign contract to build Jawa-1 power plant

Geothermal power plant owned by Pertamina in Lahedong, Tompaso, Minahasa District, North Sulawesi. (ANTARA/Puspa Perwitasari) ()

Jakarta (ANTARA News) - A consortium, led by PT Pertamina and PT PLN, has inked a power purchase agreement for the construction of a 1,760-megawatt (MW) gas-fuelled power plant (PLTGU) Jawa 1, with a total investment of US$1.8 billion.

"We laud PLN for its transparent and competitive bid and for the trust it has laid in the consortium that won the bid of the PLTGU Jawa 1 construction project. The project is a concrete evidence of synergy between Indonesias two major state enterprises," Pertamina President Director Dwi Soetjipto noted in a statement here, Tuesday.

The agreement was signed by head of the consortium who is also president director of PT Jawa Satu Power Ginanjar and President Director of PT PLN Sofyan Basir.

State-run oil company PT Pertamina established a consortium with Japans Marubeni Corporation and Sojitz Corporation to construct the power plant under an independent power producer (IPP) scheme.

The PLTGU will be built in Cilamaya District of West Java and is expected to become the largest such plant in Southeast Asia.

Pertamina will build the PLTGU Jawa 1 in collaboration with 18 domestic and international partners, including those from Japan, Korea, the US, and Europe.

Soetjipto said, the PLTGU, which has been part of the governments electricity procurement program, the 35 thousand-MW project, will be built under an integrated concept of a floating storage and regasification unit, the first of its kind in Asia.

"This momentum would become Pertaminas cornerstone in starting the IPP business and will affirm its position and role in achieving its vision as a world-class energy company," he added.

Reported by Kelik Dewanto