Int'l partners join Catur Yasa in major projects

Int'l partners join Catur Yasa in major projects

PT Catur Yasa will share center stage with top international
partners this week as it participates in signing ceremonies for
two major projects which will carry on operations well into the
next century.

Catur Yasa, the major shareholder of the energy company PT
Batu Hitam Perkasa, will be one of the signatories at the US$1.8
billion Engineering, Procurement and Construction (EPC)
agreement, as well as the boiler and turbine memoranda of
understanding for the Paiton Swasta I power plant located in
Probolinggo, East Java.

The company is also scheduled to sign an agreement to operate,
maintain and manage 50 diesel power plants located at eight
different sites in Indonesia's eastern most province of Irian
Jaya. The plants are owned by PT Freeport Indonesia.

The agreements attest to the confidence of outstanding global
corporations in the capabilities and prospects of Catur Yasa, a
leader in Indonesian energy and telecommunication projects during
the past 20 years, says Catur Yasa President Kusumo A.M.

"I consider the signing of these agreements to be particularly
appropriate during the ongoing Asia-Pacific Economic Cooperation
summit," Kusumo says. "It is a fine testament to the cooperation
which can be made between different countries in this region."

Paiton

The Paiton Swasta I power plant marks a coming of age in the
international business community for Catur Yasa.

"We see Paiton as a symbol of our growth," says Kusumo. "This
multi-billion dollar project demonstrates our readiness to work
with the world's leading companies to develop our nation's energy
and telecommunications infrastructure."

The US$2.6 billion plant will be the first large scale
privately-owned, financed and operated power plant in Indonesia.
It will be constructed under a historic Power Purchase Agreement
which was signed between PLN, the state electricity corporation,
and Paiton in February 1994. The agreement, which followed 18
months of intense negotiations between the two parties, is the
first project to sell electricity exclusively to PLN based on a
three-tiered tariff rate for its 30-year duration.

Paiton will build, own and operate the 1,230 MW plant, which
is scheduled to begin producing electricity in 1998. The plant is
expected to be a significant source of power for Indonesia's main
island of Java, where more than 60 percent of the nation's 190
million people live. It will also support industrial, commercial
and residential growth as Indonesia sets course to emerge as a
newly industrialized nation in the next century.

Paiton is a consortium of major domestic and international
companies. These include Batu Hitam Perkasa, an Indonesian
private domestic company formed in 1989 to participate in the
development of Indonesia's private power industry, which holds a
15 percent stake. Other partners include affiliates of the
Mission Energy Company, the United States' largest non-utility
developer of cogeneration and independent power production
facilities, holding 32.5 percent.

Also involved are affiliates of Mitsui and Co., a Japanese
business conglomerate active worldwide as an organizer of
international business ventures aimed at linking sources of
supply and demand (32.5 percent), and General Electric Company of
the U.S., which commands diversified global technology, services
and manufacturing (20 percent).

The Paiton Swasta I, whose design is based on the Seminole
plant in the U.S., will operate under the Indonesian government's
stringent environmental protection and air-quality standards.
Batu Hitam Perkasa will supply the plant with clean-burning low-
sulfur coal from its mine in the province of Kalimantan.

Freeport

Catur Yasa's contract to operate, maintain and manage Freeport
Indonesia's diesel-power plants in Irian Jaya presents its own
challenges, Kusumo says.

"I need to stress that its not the size of the project that is
important," he states. "There will be many aspects to handle in
management and operations, but I am confident Catur Yasa has the
experience and experienced personnel to solve any problems we
encounter."

Freeport Indonesia's operations in Irian Jaya are projected to
eventually cover around 4 million hectares and Catur Yasa will be
responsible for managing them.

Kusumo points to his company's cooperation with Freeport as a
telling example of the United States' increasing business
involvement in the Asia-Pacific region.