A wheel loader moves coal at a power plant in Pacitan, East Java. (Antara Photo/Puspa Perwitasari)
Energy Firm ABM to Spend $500m for Expansion Over Next Five Years
BY :FARID FIRDAUS
JUNE 17, 2015
Jakarta. ABM Investama, an integrated energy firm affiliated with Trakindo Group, is setting aside up to $500 million in the next five years to expand in the power and logistics sector.
The company plans to bid for several power plant projects with a total capacity of 600 megawatts this year from state utilities firm Perusahaan Listrik Negara (PLN), joining in a consortium with other state-owned companies Wijaya Karya and Perusahaan Gas Negara, ABM corporate secretary Yovie Priadi said.
ABM will aim for a controlling stake in the power projects and several others, adding up to a total capacity of 1,000 megawatts by 2020, Yovie said. The company now is operating 80 power plants with a total capacity of 1,100 megawatts across the country.
In addition, the company will also acquire several power plants, Yovie said. ABM has yet to get the green light from PLN to construct its $200 million mine-mouth power plant in Aceh.
Independent power producers, like ABM, depend on power-purchase agreements from PLN before going about building their power plants, because the utilities firm holds the monopoly right for electricity distribution in Indonesia.
Yovie said should all the projects go smoothly, the company expects to generate revenues between $1.5 billion and $2 billion by 2020, almost tripling an estimated revenue of $724 million this year.