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tate-owned developer Pembangunan Perumahan’s (PP) energy subsidiary PP Energi aims to operate at least 4,000 megawatt (MW) power plants by 2021 amid the government’s ambitious 35,000 MW electricity procurement program nationwide.

Next year, PP Energi, which was established in August, expects to manage 700 MW power plants and gradually enhance its portfolio by participating in various power plant tenders conducted by state-owned electricity firm PLN in the future.

“PP Energi is expected to contribute around 40 percent to PP’s total revenue within the next five years,” PP Energi development director Yoyok Nusihandoyo told The Jakarta Post on Friday.

Therefore, PP Energi will receive a funding injection from parent company PP to meet the target. PP aims to allocate Rp 26 trillion (US$1.92 billion) in capital expenditure next year, 40 percent of which will be used for expanding its electricity business, while 42 percent will go to infrastructure projects and the rest to low-income housing.

“We also plan to launch an initial public offering [IPO], hopefully in the fourth quarter of 2017. So, some of the funds collected during the IPO will be used to finance our electricity projects,” Yoyok added.

He said PP Energi had also formed partnerships with financing companies such as Indonesia Infrastructure Finance (IIF) and Sarana Multi Infrastruktur (SMI) to secure equity financing for such projects.

PP Energi recently won a tender worth Rp 7.8 trillion for the development of 2 x 200 MW coal-based power plants in Meulaboh, Aceh. It hopes to seal the deal under a power purchase agreement (PPA) scheme with PLN in December and start construction in June next year.

Moreover, it is currently involved in tenders for three other 200 MW plants projects in Sumatra and Kalimantan with an estimated investment value of Rp 4.3 trillion each. “We hope we can win at least two of those three projects,” Yoyok said.

PP Energi is also eager to be involved in renewable energy power plants. It won a 10 MW waste-based power plant (PLTSa) project in Surakarta, Central Java, in October, which will cost between Rp 300 billion and Rp 400 billion — excluding the investment value for land.

Meanwhile, it expects to add 100 MW to its PLTSa portfolio in the near future.

“We have communicated with 10 regional leaders, including from Makassar, Bandung, Lombok and Palembang. Then, once the 10 MW PLTSa in Surakarta succeeds, we will start developing similar plants in those regions,” Yoyok said.

The company also aims to undertake two combined-cycle power plants in Java comprising one 500 MW plant worth Rp 10 trillion and one 800 MW plant worth Rp 15 trillion.

Meanwhile, parent company PP recently met with CEOs from 40 Taiwanese companies to explore business opportunities in various sectors, including power plants, basic infrastructure and housing.

“They are interested in forming partnerships with PP, which has seen an upward trend in its performance in recent years. PP is an ideal company for them to do ‘one-stop shopping’,” Yoyok said.

PP booked a 74.65 percent annual increase in net profit to Rp 652.6 billion within the first nine months of 2016 and aims to record Rp 1.04 trillion by year-end. The company attributed the profit to its construction projects, with engineering, procurement and construction (EPC) in second place.