TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Pertamina edging toward closing US$1.44b deal for Java 1 power plant

News Desk (The Jakarta Post)
Jakarta
Mon, July 23, 2018 Published on Jul. 23, 2018 Published on 2018-07-23T12:52:22+07:00

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
The logo of state-owned oil and gas company Pertamina The logo of state-owned oil and gas company Pertamina (Shutterstock.com/Casimiro PT )

S

tate-owned energy company Pertamina has said it is finalizing a US$1.44 billion deal to finance its 1,760-megawatt (MW) steam and gas power plant (PLTGU) project in West Java, the PLTGU Java 1, which is located close to the ONWJ oil and gas block in Cimalaya.

The fund is 80 percent of the project's Rp $1.8 billion investment value.

Pertamina finance director Arief Budiman said the company and other members of the PLTGU Java 1 consortium were finalizing the financial close for the project.

A consortium comprising Pertamina, Marubeni Corporation and Sojitz Corporation signed a power purchase agreement (PPA) with PLN earlier this year, under which the consortium will sell the electricity generated by PLTGU Jawa-1.

“It is still in the finalization stage. I expect that it will reach financial close as scheduled,” he said on Sunday as quoted by kontan.co.id.

He added that they expected to reach financial close in September.

Arief, however, denied that the creditors had demanded the consortium's assets as collateral for the international funding, specifically the oil and gas ONWJ Block, which the government recently granted to Pertamina.

“The target in September was determined by state-owned electricity company PLN. We were initially offered to reach financial close in July, but the most important thing is that progress is good and the lenders are very supportive of the project,” he said.   

PLTGU Java 1 will be the largest gas-powered power plant in Southeast Asia. (bbn)

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Continue in the app

Get the best experience—faster access, exclusive features, and a seamless way to stay updated.