Marubeni, partners to build new power plant in Indonesia

24 May 2016, Week 20, Issue 358

Japan’s Marubeni will build a new thermal power plant (TPP) in Indonesia in partnership with three companies, further strengthening its presence in the Southeast Asian country’s electricity generation market. The major Japanese general trading house said that it and three partners would construct the 1,000-MW Cirebon 3 ultra-supercritical coal-fired power plant to expand the Cirebon power plant complex in West Java Province, about 250 km east of Jakarta.

Marubeni, South Korea’s Korea Midland Power (Komipo) and Samtan and Indonesia’s Indika Multi Energi Internasional (IMEI) signed a memorandum of understanding (MoU) last week to develop the independent power producer (IPP) project jointly, Marubeni said. The 1,000-MW Cirebon 2 power plant is also now under construction at a site adjacent to the existing 660-MW Cirebon power plant, which started commercial operations in July 2012.

Marubeni is involved in both the Cirebon and Cirebon 2 power plant projects with equity stakes of 32.5% and 35% respectively. Marubeni did not give any further details of the Cirebon 3 power plant project, including its equity stake in the project and the total project cost. Marubeni is the biggest investor in electricity generation projects among Japanese general trading houses and is aggressively expanding its power generation business abroad, especially in Southeast Asia.

The Indonesian government has set a target of boosting its power generation capacity by some 35 GW by 2019 to meet increasing demand amid economic growth and it expects overseas IPP project developers to contribute to achieving the target, Marubeni said. “Marubeni and other consortium companies will continue to contribute to stable power supply and economic development in Indonesia,” Marubeni said in a statement. “Marubeni has expanded its power generation capacity to over 10 GW in 22 countries, including

Japan, on an equity basis. Marubeni is committed to contributing to the development of infrastructure in Asian countries by utilising its extensive experience and know-how,” the Japanese firm said.

Edited by

Richard Lockhart

Editor

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