Sumatra to have new power plant

PALEMBANG, South Sumatra (Jakarta Post): PT Sarana Pembangunan Palembang Jaya, an administration-owned company, will build a gas-fired power plant with a capacity of 20 megawatts at an investment commitment of about US$16 million.

Company director Bahder Johan said Friday five local investors had shown interest in funding the plant and on completion it would be able to provide electricity to a predicted 14,000 households.

He said Sarana had developed a partnership with state-owned electricity company PT PLN for the distribution of its electricity output.

The power plant would be built at an 8,000-square-meter plot of land in Boom Baru 3 Ilir sub-district, Palembang.

General manager of PLN's Palembang office Dodoh Rahmat said despite additional electricity from the company, PLN could not guarantee no blackouts due to a lack of electricity supply in the region.