INDONESIA AS NEW EMERGING MARKET

Tuesday, October 17, 2006

RI PRESIDENT LAUNCHED NEW POWER PLANT

Business and Investment - October 16, 2006

Jakarta Post: President Susilo Bambang Yudhoyono with a scale model of the Tanjung Jati B power plant, which he launched Saturday in Jepara, Central Java, with Energy and Mineral Resources Minister Purnomo Yusgiantoro (to the President's left) and State Minister for State Enterprises Sugiharto (far left).

Yudhoyono said he expected the coal-fired plant, which can generate up to 1,320 megawatts of electricity, would be able to fulfill the nation's increasing energy demands and avert a future power crisis.

"Some 100 million Indonesians are yet to enjoy the benefits of electricity, with our power production only at 25,0000 megawatts at present," he said.

"Many others, meanwhile, have already become dependent and more demanding in their use of electricity. That is why the government is working to build more power plants, totaling 10,000 megawatts in capacity, within the next three years."

The new plants will secure the country's whole power supply by 2009, with the Tanjung Jati B itself adding enough at present for the country's main Java-Bali grid. The government is currently conducting bidding on plants, and will provide investors with a guarantee of the plants' output by state power firm PT PLN.

Yudhoyono also asked the country to seek other energy resources to reduce its dependence on oil-based power plants, mentioning pilot solar power generation projects in Yahukimo, Papua and biomass power plants in Tomohon, North Sulawesi.

The Tanjung Jati B power plant was built jointly at a cost of US$1.6 billion by Japanese Sumitomo Corporation and PLN subsidiary Central Java Power. PLN will operate and fully own the plant after 20 years, Purnomo said.
The plant's construction was delayed due to the Asian financial crisis in the late 1990s. Its sister projects -- the Tanjung Jati A and C plants -- are still postponed. --Suherdjoko

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