AKR Corporindo to invest $1.5bn in power plant construction in Indonesia

30 November 2014 (Last Updated November 30th, 2014 18:30)

Indonesian fuel and chemical distributor AKR Corporindo plans to invest $1.5bn in the construction of two power plants in Gresik, East Java.

Indonesian fuel and chemical distributor AKR Corporindo plans to invest $1.5bn in the construction of two power plants in Gresik, East Java.

One of the plants will be powered by natural gas and the other by coal. The two facilities will be used to meet the energy requirements of the firm’s industrial estate in Gresik, reports Jakarta Post.

Jakarta Post reported that development of the mega-project is likely to start by 2015 and is expected to be completed by 2018.

"The two facilities will be used to meet the energy requirements of the firm’s industrial estate in Gresik."

The news agency quoted AKR president director Haryanto Adikoesoemo as saying: "We are currently in the middle of discussions with both local and foreign firms with experience in building power plants to support our plan."

Each power plant will have a capacity of two x 300MW. The generated power will be used by AKR’s Java Integrated Industrial and Port Estate (JIIPE), leading to surplus revenues from energy sales.

Construction for JIIPE, which covers around 800ha, began last year and is presently in the first stage of completion. It is expected to conclude by 2015, reported Jakarta Post.

In addition to AKR, state-owned port operator PT Pelabuhan Indonesia III (Pelindo III) is also involved in project construction at the site.

Energy