A consortium of Japanese and Indonesian companies will spend US$3.2 billion on coal fired electricity plants in Central Java, after winning a contract with Indonesian state utility provider Perusahaan Listrik Negara (PLN).

The group consists of Indonesian coal miner Adaro Energy, Japanese trading house Itochu Corp and electricity company Electric Power Development Co (J-Power). News of the development comes as the Indonesian government realized a need to ‘fast-track’ efforts to add supply to PLN’s power grid. It was supposed to provide an additional 10,000 megawatts of electricity by this year, but had only added 4,000 megawatts since 2007. Indonesia’s power plants collectively supply 31,000 megawatts to the entire country.

Two new coal-fired plants in Pemalang will represent the first stage of the new efforts, producing 800-1000 megawatts. PLN wants to add 4,500 megawatts by the end of this year and another 1,000 by 2013.

Four companies had qualified to bid for the project, including one other Japanese firm. The other three were Japanese trading company Marubeni Corp, China’s largest coal producer China Shenhua Energy Company, and a consortium between China National Technical Import Corp and Guangdong Yudean Group.

source & article: The Jakarta Globe