Sudwikatmono to increase electricity generation
JAKARTA (JP): Sudwikatmono, the first businessman to be involved in private power generation, plans to expand the capacity of his electricity facilities from 76 megawatts (MW) at present to 1,000 MW within five years.
He told reporters here yesterday that one of his companies, PT Cikarang Listrindo, will expand the capacity of its power station at the Cikarang Industrial Estate in Bekasi, West Java, from 76 MW to 600 MW, while another company, PT Kusumaraya Utama, will set up a new power plant in Cilegon, also in West Java, with a generation capacity of 400 MW.
The government, concerned about its shortage of funds for power development, has invited private-sector companies to establish electricity plants with a total capacity of 4,960 MW during this Five-Year Development Plan (Repelita VI) period, beginning in April. Minister of Mines and Energy I.B. Sudjana said this week that 16 companies will likely get involved in the establishment of the plants in 16 locations.
"The expansion of the Cikarang power station will need an additional investment of US$700 million," Sudwikatmono said after a ceremony for the signing of a cooperation agreement between his company, PT Napindo Mediapratama, and the State Electricity Company (PLN) on the organization of an electricity technology exhibition at the Jakarta Fairgrounds here from Sept. 19 to Sept. 22.
General Electric
Cikarang Listrindo will cooperate with General Electric of the United States in the expansion program, he said.
In the first phase, the Cikarang power station's capacity will be expanded to 140 MW.
Cikarang Listrindo is the first private company awarded exclusive rights by the government to supply power to industrial estates. According to Sudwikatmono, the company has set a billing rate of Rp 172.96 (eight U.S. cents) per kilowatt hour (kWh) for its electricity.
The rate is far higher than the Rp 154.21 rate charged by PLN to its customers.
"We sell the excess of our output to PLN at a price of Rp 115 per kWh," Sudwikatmono said.
He also said that the establishment of the Cilegon plant, which must wait for approval from the government, will need an investment of $400 million.
His companies have received approval from the government's offshore commercial loan supervisory team to accrue foreign borrowing for their electricity projects.
Two Chinese companies, Int'l Machine Corp. and Herbine Power Plant Equipment Corp, will provide technology for the Cilegon project, which will use coal for its firing system.
The coal for the project will be supplied by PT Bukit Sumur Wijaya, a subsidiary of Wijaya Group, owned by Sudwikatmono and the hotel business conglomerate, Sukamdani Gitosardjono.
Besides the private sector, PLN has planned to increase its total generation capacity by 8,040 MW during the Repelita VI period. (fhp)