Indonesia said it will invest more than $3bn to build a 2000MW coal-fired power project in Central Java.
The country's power demand is forecast to grow around 10% a year, according to Reuters.
Indonesia's planning ministry, infrastructure projects director-in-charge Bastara Pandji Indra was quoted by Reuters as saying that they will hold a tender for the project in January 2010.
"Construction may kick off in 2011," said Indra. "It is expected to start operations in 2015."
The plant will be built through a public-private partnership under which the government will offer guarantees against political risk and difficulties in securing land at reasonable prices.