Emdeki builds power plant

JAKARTA (JP): Carbide producer PT Emdeki Utama, a subsidiary of PT Metropolitan Development, has signed a contract with Siemens Netherlands NV to build a US$15 million gas-fueled power station aimed at cutting its production costs.

According to Emdeki president Hiskak Secakusuma, Siemens would involve ING Bank of the Netherlands in providing a loan of $14 million for the construction of the power plant, which would have a generation capacity of 15 Megawatts.

The plant construction is scheduled to begin in April and be completed by the end of 1998, Secakusuma was quoted over the weekend by Merdeka as saying in Surabaya, East Java.

He said the operation of the planned power station would help his company reduce its production costs, 40 percent of which goes to state electricity company PLN.

Emdeki, he said, paid Rp 1 billion a month for electricity.

Secakusuma said Emdeki faced tough competition in the carbide business from Chinese suppliers, particularly after the government lowered import duty on carbide to 20 percent. (10)