PP Properti, the property unit of state-controlled construction firm PP, estimates its marketing sales, or sales of property that has yet to be built, to have reached Rp 2.33 trillion ($127.5 million) in the January-September period this year. (ID Photo/David Gita Roza)
State-Owned Builder PP to Invest Rp 60t in Power Plant Projects Until 2020
BY :FARID FIRDAUS
AUGUST 09, 2016
Jakarta. State-owned construction company PP, also known as PTPP, plans to invest Rp 60 trillion ($4.5 billion) in electric power plant projects until 2020, its chief said recently.
The company, which has been one of the major players in Indonesia's construction sector, plans to develop power plants with a total capacity of up to 4,000 megawatts over the next four years, PTPP president director Tumiyana said.
In a bid to realize this ambition, PTPP has set a target to invest in power plants with a total capacity of 1,200 MW next year.
Towards this end, the company is currently eying a tender from state utility company Perusahaan Listrik Negara (PLN) for a gas-fired power plant.
"We will seek strategic partners to establish a consortium to undertake tenders for power generation projects," Tumiyana said.
PTPP currently operates a 65 MW gas-fired power plant in Talang Duku, South Sumatra, and a 2 x 7 MW coal-fired plant in Lampung province. The firm is also in the bidding for a 2 x 200 MW coal-fired plant in Meulaboh, Aceh.
"We want to invest more in gas-fired power plants. The proportion of gas-fired plants may make up about 30 percent of the total power plants [to be developed]," Tumiyana said.
The firm also plans to spin off its energy-related business into a separate limited liability company, PP Energi.
After completion of the spinoff, the subsidiary plans an initial public offering by the fourth quarter of this year, with a target of raising up to Rp 4 trillion from the share sale.
PTPP was previously known as Pembangunan Perumahan, before legally changing its name to the abbreviated version.