Build Power Plants, PP to form subsidiary in Energy

PT Pembangunan Perumahan will form a subsidiary in energy, PP Energi within the next month. The state-owned company with core business in construction made the initiative to contribute to the 35,000 MW project.

PP Director Tumiyana elaborates that the company is set to complete several power plants with 4,000 MW total capacity between 2019 to 2020. One of the power plants set to complete is the Meulaboh steam power plant with 2x100MW capacity.

“Our target is to spin-off (PP Energi) by next month,” Agus said after a release at the Jakarta Stock Exchange, Jakarta on Wednesday, August 3 2016.

Tumiyana said that PP would require an approximately IDR60 trillion to complete the 4.000 MW projects. The number is made under the assumption that 1MW would require approximately US$ 1,5 million to build.

Currently PP is in the process of constructing several power plants. Example such as the gas-powered power plant in Bangka with 3x475MW capacity that has reached 80 percent progress. Also the Pontianak power plant which is already reached 50 percent progress. “Our target next year is to reach 1,200MW,” Tumiyan said.

PP also opens the possibility for PP Energi to be listed at the stock market next year. That is why PP Finance Director Agus Purbianto mentioned that the company is searching for a brownfield infrastructure project to support the company’s performance.