JAKARTA (TheInsiderStories) - PT United Tractors Tbk (IDX: UNTR) through its subsidiary PT Persada Unitra Energia (UPE) and its partner KP Power Development from Netherlands and Japan’s Sumi Energy Ventures LLC, have agreed to set up a joint venture company PT Bhumi Jati Power (BJP) which will operate a coal-fired power plant (PLTU) Tanjung Jati in Jepara, Central Java.
Corporate Secretary Sara Loebis said in disclosure to Indonesia Exchange explained that UPE will own as much as 25% in BJP, Sumi Energy 50% and KPPD 25%.
The joint venture company will engage in the development and operation of over 2 × 1000MW ultra-supercritical power-generating unites with the scheme BOT (Build-Operate-Transfer) in the area of Tanjung Jati B Power Plant Coal units 5 and 6 in Central Java province.
Previously, Finance Director of United Tractors Iwan Hadiantoro expects PLTU Tanjung Jati B Unit 5 and 6 will start in this quarter. The financial close to fund the project is being discussed.
Iwan said PLTU Tanjung Jati B Unit 5 and 6 are the extensio n of PLTU Tanjung Jati B Unit 1, 2, 3 and 4. PLTU Tanjung Jati B Unit 5 and 6 will require an investment of US$4.2 billion. PLTU Tanjung Jati is targeted to begin operating in 2019 or early 2020.
UNTR said it sets aside $200 million to develop PLTU Tanjung Jati B Unit 5 and 6. Iwan said the project is an extension of cooperation between UNTR and Sumitomo Corporation and Kansai Electric Power Co. Inc, which had earlier developed PLTU Tanjung Jati B Unit 1 to 4.
PLTU Tanjung Jati 5 & 6 will have installed capacity of 2×1.000 MW and will require 7 million tons of coal per annum. The power plant could be the largest coal-fired power plant in South East Asia. The electricity from the power plant will be supplied to the state electricity company PLN for 25 construction.
The establishment of Unitra Persada is form of the company’s diversification, which will engage in power sector. In addition, United Tractors is also eyeing a mine mouth power plant in South Sumatera with potential installed capacity of 2×300 MW. (*)