PLN to Start Construction on $2b Coal-Fired Power Plant in 2016


APRIL 22, 2015

Serang, Banten. State utility company Perusahaan Listrik Negara is set to build the $2 billion coal-fired power plant in Banten next year, as part of its effort to boost the Indonesia's electricity supply.

The plant, which is called Java 7, will have a capacity of 2,000 megawatts, said Trilaksito Sunu, a director at Pembangkit Jawa Bali — a PLN subsidiary that operates power plant across country — on Tuesday. The planned capacity would make it the fourth-largest power plant in the country after facilities in Paiton in East Java, Suralaya in Banten, and Gresik in East Java.

Government is tasking PLN to create 10,000 megawatts of power capacity by 2019, as part of the country's effort to attain 35,000 megawatts of power by that time.

PLN is currently tendering the project and targets early next year to award the contractor, who will immediately start construction. PLN targets the plant to be online in 2019.

The plant will have a daily requirement of 8,000 to 10,000 tons of coal, which will be sourced from Sumatra or Kalimantan, Trilaksito said.