Indonesian, Australian firms sign US$5.5 billion contract
Indonesian, Australian firms sign US$5.5 billion contract
JAKARTA (JP): Two Indonesian-Australian joint venture
companies, PT Indonesia Bulk Terminal and PT Adaro Indonesia,
have signed a US$5.5 billion contract with Indonesia's PT Batu
Hitam Perkasa to supply and handle coal for PT Paiton Energy
Company's coal-fired plant in East Java.
The agreement was signed here yesterday by representatives of
the three companies in an Asian Pacific Economic Cooperation
(APEC) brunch gathering. The gathering, organized by the
Indonesia-Australia Business Council, was attended by Indonesian
Coordinating Minister for Industry and Trade Hartarto and
Australian Minister of Trade Robert McMullan.
Under the agreement, PT Batu Hitam Perkasa (BHP) will sell and
deliver to PT Paiton Energy Company (PEC) an average of 4.3
million tons of coal per annum during the 30 year term of the
agreement, valued at an estimated $5.5 billion.
Kusumo A.M., a director of PT Indonesia Bulk Terminal (IBT),
told The Jakarta Post after the signing ceremony that the coal
will be supplied by PT Adaro's mine in South Kalimantan and will
be handled, stored, and shipped by PT Indonesia Bulk through its
large scale deep water bulk-handling port at Pulau Laut, off
south eastern Kalimantan.
PT Adaro Indonesia is equally owned by Australia's New Hope
Corporation Limited and by Indonesia's firms--Tirtamas and
Swabara groups.
New Hope also owns 50 percent of PT Indonesia Bulk with the
remaining shares held by Indonesian shareholders, Tirtamas,
Swabara groups and PT Dermaga Batu Perkasa.
The $2.5 billion Paiton coal fired plant, consisting of two
units each with a capacity of approximately 615 megawatts, was
built by PT Paiton Energy Company whose shareholders are the
United States' Mission Energy and General Electric, Japan's
Mitsui and Co. Ltd. and Indonesia's PT Batu Hitam Perkasa.
During the gathering, a memorandum of understanding was also
signed by Australia's Ray White Real Estate with Indonesia's PT
Mercanta Propindo.
PT Mercanta Propindo's President Jenny Jethnani told the Post
that her company, and Ray White, will jointly market properties
both in Indonesia and Australia.
"For example, we will cooperate to market King's Gate
apartments in Mampang, southern Jakarta area and housings, lands
or other properties in Perth and Sydney to Indonesians," Jenny
said.
The Australian embassy said Indonesia-Australia business ties
have been expanding rapidly, as shown by an increase of around 63
percent in the issuance of business visas over the previous year.
Jenny added that since most Indonesian buyers of properties or
houses in Australia are those who send their children to study in
their country, her office also provides other related services,
such as information about schools and assistance in getting
multiple entry visas.(als)