Bakrie plans power plant in Lampung

Bakrie plans power plant in Lampung

JAKARTA (JP): The Bakrie Group is awaiting government approval
to build a 4,000 megawatt coal-fired steam power plant in
Tarahan, South Lampung regency, Antara reported.

"Bakrie has submitted its plan to PT PLN (the state-owned
electricity company)," chairman Aburizal Bakrie was quoted by
Antara as saying Saturday.

The shortage of power has hampered industrial development in
Lampung, Aburizal said in Kalianda, South Lampung.

He cited as an example the delay in Bakrie Group's plan to
build a US$1 billion steel plant in Lampung.

Insufficient power would also discourage foreign investors, he
added.

Aburizal, who is also chairman of the Indonesian Chamber of
Commerce and Industry, said Lampung could become a major
industrial center if it had the steel plant. "The steel plant
could lead to the development of a lot of downstream industries,"
he said.

Bakrie's power plant will be an addition to the coal-fired
steam power plant being built by PT Tarahan Power Company (TPC),
a company partly owned by the Tahija family.

The TPC plant will begin operation in 1999 and its electricity
will be sold to PLN at an average price of 6.55 US cents per
kilowatt hour.

Bakrie has also proposed building a Java-Sumatra under-the-sea
interconnection cable network to help meet Sumatra's power needs.

The group is currently developing a Rp 300 billion ($111
million) industrial estate on a 2,000-hectare site in South
Lampung.

Other Bakrie Group projects in the province include cattle
rearing, brick industries in cooperation with local small
enterprises, and an integrated resort area in South Lampung
regency. (08)