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Aceh, Cikampek to have US$350mn Power Plants

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Editor

28 July 2016 15:18 WIB

TEMPO.CO, Jakarta -Pupuk Indonesia Energy (PIE) plans to build two thermal power plants in Cikampek and Aceh. The US$350 million investment plan is a follow up to the construction of a power plant in Gresik currently undertaken by the company.

The construction is planned to begin this year. The thermal power plant in Cikampek will have a capacity of 2x150 tons of steam per hour to supply raw materials to Pupuk Kujang. The plant in Aceh will have a power capacity of 25 MW and a steam capacity of 2x170 tons per hour to be supplied to Pupuk Iskandar Muda.

PIE president director Tentaminarto T. F. said his company's focus is to building co-generation power plants that generate can electricity and feedstock at the same time; delivering supplies to fertilizer factories.

On Wednesday, July 27, Tentaminarto signed a loan agreement between PIE and Bank Sumitomo Mitsui Indonesia (SMBC Bank). SMBC lends US$63.5 million to PIE with a tenor of eight years that can be renewed after three years. The loan will be used to finance the Gresik power plant project.

PIE is currently building a gas power plant with a power capacity of 22 MW and a steam output of 160 tons per hour in Gresik. The project is worth US$90 million. So far, construction progress has reached 32 percent. The plant is expected to start operating commercially in November 2017.

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