It will be developed through the gas-steam fueled power plant (PLTGU) Jawa 1 with a designed capacity of 1,760 megawatts (MW).
The Power Purchase Agreement (PPA) of the project was signed in Jakarta on Tuesday by Ginanjar, President Director of Pt Jawa Satu Power, in his capacity of the developer of PLTGU Jawa 1, and Sofyan Basyir, President Director of state-owned electricity company PLN, It was witnessed by Pertamina President Director Dwi Soetjipto.
During the signing of the agreement, Soetjipto expressed appreciation to PLN for the implementation of the Independent Power Producer (IPP) tender of the PLTGU Jawa 1.
The Pertamina president director appreciated the trust given to the Pertamina consortium to win the tender which was held openly, transparently and in a competitive manner.
"This project is a concrete synergy between two large Indonesian state companies, Pertamina as an energy company and PLN as a national electricity firm," Dwi stated.
Pertamina, along with Marubeni Corporation and Sojitz Corporation, has been successful in having signed and won the PPA of the IPP PLTGU Jawa 1 project with a value of about US$1 billion.
The IPP project constitutes an international collaboration involving 18 international partners (Indonesia, Japan, South Korea, the United States and Europe) and domestic partners.
He noted that the signing of the PPA is an important basis for Pertamina in starting an IPP business and in affirming its position as a world-class energy company.
Pertamina also appreciated the cooperation among all the consortium partners, including creditor consortium, to obtain trust.
"Close cooperation is needed to realize this project on time and for the correct calculation of cost," he added.(*)