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AKARTA: State power company PT Perusahaan Listrik Negara (PLN) announced that it had signed an agreement with PT Siemens Industrial Power (SIP) for the procurement of turbines and generators for PLN’s coal-fired power plants.

The agreement was reflected through a memorandum of understanding (MoU) which was signed by PLN president director Nur Pamudji and SIP president director Dierk Unterspann in Bandung, West Java, on Friday.

SIP is a producer of turbines and generator with the capacity of up to 20 megawatts (MW) which are very important to support Indonesia’s electricity system.

“PLN has identified 15 locations with power plants below 20 MW that are in need of turbines and generators. We hope SIP can fulfill the needs and therefore we don’t need to import the equipment,” Pamudji said in a press statement sent to The Jakarta Post.

In addition, the company had also eyed 200 other locations which needed new power plants with capacity of lower than 3 MW and there would be good market potential for SIP in the future, he continued.

For the initial phase, SIP will produce four steam turbines and generators which have capacity of 7 MW each for the Timika power plant in Papua. All production and maintenance of all equipment will be handled by SIP.

SIP is a joint venture company between Siemens AG and PT Nusantara Turbin and Propulsi.