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iversified conglomerate Astra International, the nation'€™s largest company by market value, is currently bidding for two power plant projects in Sumatra, costing US$1.17 billion, with the plan to strengthen its position in the infrastructure sector.

Pamapersada Nusantara, a subsidiary of Astra subsidiary United Tractors, is currently bidding on a tender for two mine-mouth power plant projects in Sumatra, with capacity to produce 2-by-300 megawatts (MW) and 2-by-150 MW of electricity, respectively.

The first project is estimated to cost between $720 million and $780 million, while the other may cost up to $390 million.

Sara K. Loebis, corporate secretary for United Tractors, the nation'€™s largest heavy-equipment provider, said the tender was still ongoing. '€œWe will announce one of the [power plant] projects in June 2014,'€ she said as quoted by kontan.co.id.

Pamapersada Nusantara aims to own a 30 percent stake in the Sumatra power plant projects, while the remainder would be shared between three other undisclosed companies; a mine owner, a mining contractor and an engineering procurement and construction (EPC) contractor.

Indonesia is trying to boost its electricity supply to meet growing demand. The country needs to add an average 5,700 MW per year through 2022 to avoid an electricity crisis. The Energy and Mineral Resources Ministry'€™s directorate general for electricity reported that the nation'€™s electrification rate, which is the percentage of the population with access to electricity, stood at 80.4 percent as per the end of 2013.

The National Development Planning Board (Bappenas) has estimated that Indonesia needs to secure $550 billion worth of investment in infrastructure projects between 2015 and 2019 to resolve infrastructure bottlenecks that are impeding economic activities in Southeast Asia'€™s largest economy.

Astra International aims to strengthen its position in the infrastructure sector by allocating
Rp 2.5 trillion ($217.5 million) for capital expenditure of its infrastructure wings this year, primarily for toll roads, energy, clean water, ports, logistics and telecommunications.

The company expects its 40 kilometer Kertosono-Mojokerto toll road in East Java, which is costing Rp 1.8 trillion, to be open by the end of this year. Marga Harjaya Infrastruktur, a subsidiary of Astra International'€™s subsidiary Astratel Nusantara, is working on the project.

The first section of the toll road will stretch 15 km from Kertosono to Jombang, while the second and third sections will be 20 km and 5 km in length, respectively.

'€œWe are aiming that in August [the first section of the Kertosono-Mojokerto toll road] will be completed,'€ Astra International director Paulus Bambang Widjanarko Eddy said, adding that the first section would undergo a trial period before its full commercial launch.

Construction on the first section was almost finished, while the second and third sections would be completed by November at the earliest, according to Paulus. Up to 23,000 vehicles per day are expected to use the toll road.

Astra International also plans to widen another toll roads it owns, namely the Tangerang-Merak toll road in Greater Jakarta, by adding two or three more lanes at an estimated cost of Rp 500 billion. The company also owns a 40 percent stake in the 11.2 km Kunciran-Serpong toll road in Greater Jakarta.