JAKARTA, (Xinhua) -- South Korean firm Daewoo Engineering & Construction plans to build a power plant that worth 2.5 trillion rupiah (about 290 million US dollars) power plant in North Sumatra that will supply 60 megawatts of electricity to state utility provider Perusahaan Listrik Negara (PLN), local media reported here on Wednesday.
Dahlan Iskan, president director of PLN, said Daewoo would sign an independent power producer agreement on Thursday, the closing day of the Indonesia International Infrastructure Conference in Jakarta.
"We have already signed a power-purchase agreement with Daewoo, and we expect that construction can be completed by 2013," he said on the sidelines of the conference.
Indonesia is hosting a three-day conference on infrastructure, organized by the Indonesian Chambers of Commerce and Industry.
The state power company expects to raise the percentage of households that have access to electricity from 65 percent currently to 91 percent in 2019 and 100 percent by 2020. Indonesian power grid has 31,000 MW of available power to supply the nation's 240 million people with electricity.
PLN has struggled to meet rising demand for electricity in the country. It has been tasked with producing 55,484 MW nationwide by 2019 in order to boost the nation's economic growth, and it hopes to reach that level by offering 23,525 MW to the private sector through the Independent Power Provider (IPP) scheme, the Jakarta Globe reported..
The government has announced a 20,000 MW fast-track program that will operate in two phases and is expected to be completed by 2014. PLN has targeted generating an additional 10,000 MW by 2013 in the first phase, with the private sector expected to generate the same amount in the second phase.
Dahlan also said that a consortium of South Korean giant Hyundai and state construction company Pembangunan Perumahan had started the construction of an 89 MW hydroelectric power plant in Peusangan, Aceh. The project is estimated to cost Rp 3 trillion and is expected to come online in 2013.
"The year 2013 alone will see a significant addition of 3,000 MW of power generation in Indonesia," Dahlan said.