Energy minister launches a 660 MW coal-fired power plant in Cirebon

Amahl S. Azwar, The Jakarta Post, Cirebon, West Java | Business | Thu, October 18 2012, 3:07 PM

Energy and Mineral Resources Minister Jero Wacik launched the first unit of a coal-fired power plant (PLTU) in Cirebon, West Java to supply electricity to Bali and Java.

The unit cost US$850 million and has a production capacity of 660 megawatts (MW).

"We hope that it [the unit] can also increase confidence from the investors, which will boost the economy in the region," Jero told reporters on the sidelines of the opening ceremony at the plant in Kanci village.

The power plant project was initiated by privately owned company PT Cirebon Electric Power (CEP) under the independent power producer (IPP) scheme.

Japan-based Marubeni Corporation owns a 32.5 percent stake in CEP, followed by Korea Midland Power Co (27.5 percent), Korea-based Samtan Co. Ltd (20 percent) and Indonesia's publicly listed Indika Energy.

State utility firm PT PLN will buy the electricity from the power plant at a price of 4.43 US cents per kilowatt-hour.(iwa)