Indika Consortium to Build $1.4b Power Plant in Cirebon

Integrated mining and energy company Indika Energy will lead a consortium that includes Japanese and South Korean companies to invest between $1.2 billion and $1.4 billion to build a power plant in Cirebon, West Java.

Indika Energy will work with Japanese trading company Marubeni Corporation, South Korean electricity production and supply company Korea Midland Power, and South Korean resources and energy company Santan Corporation.

The 1,000 megawatt power plant construction is a way to support the government’s plan in infrastructure development.

The government will build a 10,000 MW power plant and private companies are expected to build the remaining 25,000 MW power plant.

“We would like to be a part of the government’s plan,” Indika Energy president director Wishnu Wardhana said on Tuesday. “We hope that we can own 25 to 30 percent of the shares in this project,”

The new power plant will be in addition to the company’s 660 MW power plant, also in Cirebon.

Indika owns a 20 percent stake in the existing power plant, while Marubeni owns 32.5 percent,and Korea Midland Power 27.5 percent.