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ABM Investama unit to build coal-fired power plant in Karimun Island in 2015

JAKARTA (Rambu Energy) – PT Sumberdaya Sewatama Tbk [SSMM.JK] said that its subsidiary PT Karimum Power Plant (KPP) has on Oct. 31 secured a permit from the Energy and Mineral Resources Ministry (ESDM) to develop coal-fired power plant (PLTU) with a capacity of 120 megawatt (MW) for Karimun Islands area.

PT Sumberdaya Sewatama Tbk is a subsidiary of PT ABM Investama Tbk, found by Achmad Hamami, one of richest entrepreneurs in Indonesia.

President Director of Sumberdaya Sewatama N. Hasto Kristiyono said Sewatama is ready to provide funds needed to develop a 2×20 megawatt (MW) of power plant, the first phase of the power plant project. “The amount of funds needed of US$60 million will come from internal cash flow and bank loan,” Hasto said.

The groundbreaking of the power plant is scheduled for early 2015.

Hasto said with the permit, Sewatama will become an independent power producer (IPP) to provide long-term electricity needs of the area by developing power plants generated by fossil fuel, new and renewable energy to meet the needs of retail, industrial, public utilities, energy efficiency service as well as temporary power facility.

Hasto said Sewatama and Karimun Power Plant are confident the power plant project will be completed on schedule. Sewatama will leverage its 20-years of experience in power business in developing the Karimun power plant project.

President Director of Karimun Power Plant Elan Badral Fuadi said the power plant will supply electricity needs for industrial area in Karimun Island zone II, as well as supplying excess power to state electricity company PT PLN.

KPP will cover 7,326 hectares of area or 75 percent of Karimun Island area. Fuadi said KPP has secured 27.7 hectares of land plot to build the power plant as well as coal supply for 20 years to meet the needs of the 120-MW of power plant.

The Indonesian government has declared Karimun Island as Free Trade Zone (FTZ) as well as a new Coastal Area development in 2009 along with Bintan and Batam Islands. The Karimun FTZ covers 9,666 hectares of land, comprising of Karimun Island and nearby Karimun Anak Island. Industries in Karimun Island are mainly engaging in shipyard, tourism and agriculture.

PT Karimun Power Plant is 85 percent owned by PT Pradipa Aryasatya, a wholly owned company of PT Sumberdaya Sewatama. Pradipa acquired Karimun Power Plant shares in mid 2014. (editorial@rambuenergy.com)

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