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Monday, February 25, 2008

Indonesian coal miner says borrows $180 mln for power plant

Mon Feb 25, 2008 6:48am EST

JAKARTA, Feb 25 (Reuters) - A unit of Indonesian coal miner PT Tambang Batubara Bukit Asam Tbk PTBA.JK said on Monday that it would borrow 1.64 trillion rupiah ($180 million) in bank loans to build a 200 megawatt coal-fired power plant in south Sumatra.

The subsidiary, PT Bukit Pembangkit Innovative, said in a statement that the Banjarsari power plant would boost electricity supply in South Sumatra.

Parts of Java, Indonesia's most crowded island, and the resort island of Bali were plunged into darkness last week as bad weather hampered coal deliveries to power plants.

Indonesia's power sector has been beset by problems because of ageing plants, high costs and low funds as tariffs are highly subsidised and still among the lowest in the world.

($1 = 9,125 rupiah) (Writing by Andreas Ismar, editing by Sara Webb)


Related Story:

Indonesia's Star Energy to build 2nd Wayang Windu power plant for 220 mln usd


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