United Tractor Begins Process of Construction of PLTU Java 4 in Jepara
By : Hariyanto And Aldo Bella Putra | Friday, September 01 2017 - 18:00 IWST
INDUSTRY.co.id - Jepara - PT United Tractors Tbk (UNTR) started the construction of construction phase of PLTU Java 4 with capacity 2x1.000 MW. The company, which owns the core heavy equipment and mining business, marked the beginning of the first step of working on electricity business through this inaugural project.
Through its subsidiary PT Unitra Persada Energia, the company holds a 25% stake in PT Bhumi Jati Power. Besides owned by UNTR, shares of PT Bhumi Jati Power are also controlled by Sumitomo Coorporation Group with 50% shareholding and The Kansai Electric Co Inc Group which holds 25% shares. Hopefully PLTU Java IV will be completed in 2021.
The construction of PLTU Java 4 requires an investment of US $ 4.2 billion derived from the loan from The Japan Bank for International Cooperation (JBIC) and other banking syndications. Later, the company will get recurring income from the operation of the power plant, let alone the company has signed a purchase power agreement (PPA) for 25 years with PLN.
In addition to getting recurring income, UNTR revenue is also certain to skyrocket. Because one third of the coal needs will be supplied by the company, each year, PLTU Java 4 requires at least 7 million tons of coal. By using ultra-critical technology, the plant is claimed to be very efficient and environmentally friendly.
"We have signed agreements with several leading coal suppliers in Indonesia, such as KPC, Kideco, Jembayan and Asmin Bara Baronang and Prima Multi Mineral," said Iwan Hadiantoro, Director of UNTR in Jepara, Thursday (8/31/2017).
According to Iwan, in 2020 or the initial phase of commissioning the company has secured supply. Just so you know, the construction of PLTU Java IV will be completed within 50-56 months ahead. For unit I, it is expected to be completed in May 2021 while for unit II will be completed by September 2021.
Therefore, he said there is no problem of coal supply. "Around 2020 the beginning of our commissioning is already secure supply, so the cooperation will last for the next 25 years," he continued. (tan)