What Pak Effendi said was:
- Government plan to build 35,000 MW within 5 years. 20,000 MW will be executed by IPP.
If AP is able to get 20% of it or 4000 MW (within this 5 years) it is good already. - The target is 20,000 MW within 20 years (from 2010)
Jakarta. Adaro Energy, Indonesia’s second-largest coal miner by production volume, is aiming to contribute some 40 percent of the power plants the government plans to build each year between 2015 and 2019, a director at the company’s subsidiary announced on Tuesday.
Mohammad Effendi, president director of Adaro Power, an independent power producer arm of Adaro Energy, explained that based on the government’s target to construct power plants with a combined capacity of 35,000 megawatts within the next five years, Adaro will contribute about 7,000 megawatts annually.
“We hope to contribute at least 40 percent of [the government’s annual target],” he confirmed.
Adaro Energy has been extending its reach into the electricity business since 2012 in attempt to diversify its business, following the decline of global coal prices.
“We have a long term vision that doesn’t just include coal, but also power generation,” Effendi said. “Indonesia still needs a lot of electricity. [Adaro] has the coal, so it matches. We can supply the coal to the power generator and distribute it through [state utility company] PLN.”
Through Adaro Power, the coal miner is currently undertaking several power plant projects, the largest of which — a coal-fired plant in Batang, Central Java — is set to produce up to 2,000 megawatts of electricity. However, the endeavor is currently delayed due to problems related to land acquisition. The power plant is estimated to cost $4 billion.
Adaro Power owns a 34 percent stake in a consortium that was appointed to handle a project called Bhimasena Power Indonesia (BPI). Japanese investors J-Power and Itochu own the remaining stake.
Adaro’s additional project is a 2 x 100 megawatt mine-mouth, coal-fired power plant in South Kalimantan.
Effendi added that the company aims to produce 20,000 megawatts of electricity by 2022.