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Bakrie Power to Construct New Plant in E. Kalimantan
February 12, 2012

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Sangatta. Bakrie Power, a subsidiary of a holding company of Bakrie & Brothers, plans to build a $340 million power plant in East Kalimantan that will be capable of generating 200 megawatts (MW) of electricity.

Ali Herman, president director of Bakrie Power, said on Sunday that the mine mouth plant would be located near the Sangatta coal mines in East Kutai district and would take four years to complete.

It will need around 2,000 workers during its 36-month construction time.

The plant will be supplied by “low rank coal” from Sangatta coal mines owned by Kaltim Prima Coal (KPC), a subsidiary of the world’s largest thermal coal exporter, Bumi Resources, which is also a Bakrie company.

“The real demand for electricity for East Kalimantan province is currently 500 megawatt and by 2013 it will grow to 600 megawatt and by 2020 to 1,100 megawatt,” Ali said, adding that the plant would help serve the province’s growing demand for electricity.

Ali said the company was ready to hold the “groundbreaking” ceremony as the plant had been in the works since 2009 and had gone through all procedures, including technical studies, engineering and commercial studies as well as environment impact.

Ali on Saturday presented the development plan for the plant to East Kalimantan governor Awang Faroek Ishak, deputy governor Farid Wadjdy, deputy regent head of East Kutai Ardiansyah Sulaiman, and other senior local government officials in the East Kutai district office.

Awang said he would ease licensing approval procedures concerning the plant because it had been included in the government’s economic development master plan (MP3EI).

Bakrie Power operates geothermal and coal-fired power plants across Indonesia.

In their two-day trip to East Kutai on Friday and Saturday, the governor and deputy governor also visited railway and air strip projects in Muara Bengalon.

Antara