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Jakarta Post

Cirebon power plant approaching financial closure: Indika Energy

Cirebon power plant approaching financial closure: Indika Energy Indika Energy director Aziz Armand (right), president director Arsjad Rasjid (center) and independent director Eddy Junaedy Danu (left) discuss the company’s latest report after a press conference in Jakarta on Thursday. (JP/yon)
News Desk
Jakarta   ●   Fri, April 28, 2017 2017-04-28 13:18 1477 a291276806121264c0bd211cdeb4eb49 1 Business Indika-Energy,Cirebon,project,financial-close Free

Publicly listed coal mining company Indika Energy is in the process of securing US$2.1 million for its 1-gigawatt coal-fired power plant (PLTU) Cirebon CEP-2 in West Java.

Financial closure for the project is expected to be achieved in the first half of 2017, Indika Energy president director Arsjad Rasjid said on Thursday.

Bank loans are expected to cover 80 percent of the funds, while another 20 percent is prepared by a consortium led by the Japan Bank for International Cooperation (JBIC) and Export–Import Bank of Korea, according to Arsjad.

(Read also: Rising coal price puts Indika Energy back in the black)

Meanwhile, work on the ground, like the preparation of land for the project, had already begun, said Arsjad, adding that construction was expected to start soon, as the company was actually required to finish the project in early 2020.

The PLTU Cirebon CEP-2 project is part of the company’s expansion to increase its production capacity.

Indika Energy has also built the PLTU Cirebon CEP-1 plant with a capacity of 660 megawatts.

“We have 280 hectares of land, 80 hectares of which have been used for PLTU Cirebon CEP-1, the remaining 200 hectares are actually enough to construct three more power plants, including the one that we are going to establish soon with a capacity of 1 GW,” Asrjad said. (yon)