Indonesia’s PP and South Korea-based Hyundai have secured a Rs2.9tn ($339.4m) contract for the construction of a hydro power plant in Indonesia.

Under the contract, the companies will build an 88MW hydropower plant in Sumatra’s Aceh province.

The contract comes in line with Indonesia’s plan to increase its power supply over the next few years and South Korea’s strategy to venture into Asian manufacturing investments.

The hydro power plant is expected to begin operation by 2016.