South Korean interests are aiming to build several TPPs in Indonesia through investing over US$200 million.
The South Koreans made the commitment at the recent Indonesia-Korea Business Summit in Jakarta, Indonesian Investment Co-ordinating Board chairman Thomas Lembong said.
Lembong declined to give details or identify the companies involved, but said deals would be in excess of US$200 million.
South Korea is the third largest investor in Indonesia, according to President Joko Widodo’s office, but has to date not invested much in electricity generation.
Separately on March 18, South Korean engineering firm Doosan Heavy Industries said it had signed an agreement with state power firm PLN and local firm Hutama Karya to expand the gas-fired Muara Towar TPP by 600 MW by adding additional turbines.
The US$400 million expansion will increase capacity at Muara Towar, which supplies electricity to the Jakarta area, to 1,800 MW.
In January, Indonesia coal producer Adaro Energy said it was close to finalising financial terms in a joint venture power project with East-West Power Indonesia, which is a subsidiary of Korea East-West Power.
That venture plans a 200-MW, coal-fired TPP at Tabalong in South Kalimantan, where Adaro has mines.
Adaro was seeking US$420 million in loans from international banks, including Korea Development Bank and Korea Trade Insurance, towards the US$545 million development cost.
The Muara Towar contract was one of 16 engineering procurement agreements PLN said it had signed with a number of firms on March 17 to develop a total of 1,825 MW of additional capacity. The agreements are part of the 35,000-MW power expansion target set by President Joko to be completed by 2019. However, local media have said the expansion programme is well behind its schedule.v