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)