JAKARTA, April 8 Indonesia plans to build a
coal-fired power plant with total capacity of 2,000 megawatts
worth 20 trillion rupiah ($1.8 billion) in Jakarta, State-Owned
Enterprises Minister Dahlan Iskan said on Tuesday.
Southeast Asia's largest economy is in desperate need of
electricity as decades of under-investment in power projects and
bureaucracy have led to frequent black-outs in offices and
Indonesia plans to add up to 60 gigawatts of electricity
capacity to meet demand that is expected to roughly double by
2022, requiring a total of $125.2 billion in investment, an
energy ministry official said last month.
The comment by Iskan to reporters on the sidelines of a
media briefing came ahead of a parliamentary election in the
world's third-largest democracy on Wednesday. The result will
determine who can contest the July 9 presidential election, for
which Jakarta Governor Joko Widodo is widely considered a
State-owned logistics and industrial parks developer PT
Kawasan Berikat Nusantara (KBN) plans to reclaim 100 hectares of
land near the Tanjung Priok port in Jakarta, where the power
plant will be built, KBN President Director Sattar Taba told
reporters on the sidelines of the briefing.
Taba said he expects the project, which will be a
public-private partnership, to take four years to complete and
ground-breaking is slated for the first quarter of 2015.
Most of the funding for the project will come from a Chinese
consortium, which will also be involved in building the plant,
Taba said, declining to disclose specific names.
KBN may have a stake of up to 20 percent in the project, he
said. The remainder of the shareholding structure is unclear.
"The need for electricity in Java is very high whereas
supply is very low, so it is predicted that in 2017 there will
be an electricity crisis if the plant is not built from now,"
Taba said. Jakarta, the Indonesian capital, is located in the
densely populated island of Java.
($1 = 11,302.50 rupiah)
(Reporting by Fathiyah Dahrul; Writing by Eveline Danubrata in
SINGAPORE; Editing by Muralikumar Anantharaman)