Indonesia Favors Coal over Oil for Power Feed

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Six local Indonesian and international banks are providing 40% of the loan funding for the country's $8 billion project to add 10,000 megawatts (MW) of coal-fed generating capacity. The state's power utility Perusahaan Listrik Negara (PLN) plans to build 10 coal-fired plants in Java and 25 in other parts of the multi-island country. The project is on a fast track and is scheduled for completion by 2010.

PLN had planned to reduce oil-feed dependency by 20% in 2007 and a further 8% in 2008, but the 2007 target was missed because of shortfalls in the supply of coal and gas. Current use of oil-based fuel feed stands at 30% of total power capacity.

Engineering, procurement and construction contracts worth $190 million were awarded in January, and in 2007 the company signed a total of $2 billion in contracts for coal-fired plant projects. The projects are Pacitan (600 MW) in East Java, Pelabuhan (900 MW) in West Java, Teluk Naga (900 MW) in Banten and Tanjung Awar-awar in East Java.

In another project, The AES Corporation (NYSE:AES) signed a preliminary contract for the first 1,200 MW of a 2,600-MW coal-fired mine mouth power station at Musi Rawas in North Sumatra. In 2006 a memorandum of understanding was signed between PLN and a consortium consisting of AES, Sojitz Corporation and PT Triaryani. The project has an integrated lignite mine with reserves of about 650 million tons that could feed a 4,400-MW project over 30 years.

View Project Report - 93000199 93000204 93000205 93000206

Industrial Info Resources (IIR) is the leading marketing information services company for the industrial process, heavy manufacturing and energy-related markets throughout the world. Celebrating its 25th anniversary, IIR provides accurate and timely intelligence featuring plant and project information databases, focused market databases, industry forecasting, key industry contacts, industry and territorial map products, direct marketing services and applications, and daily industry news.