PLN gives Pertamina second shot at Jawa 1

JAKARTA , January 24, 2017 – Indonesian state utility company Perusahaan Listrik Negara (PLN) on Tuesday granted a Pertamina-led consortium another chance to reach a power-purchase agreement (PPA) for the greenfield Jawa 1 power plant.

Despite having missed the Monday PPA deadline, the two parties decided to extend negotiations. In the days leading up to the deadline, PLN had repeatedly threatened to put the 1.6 GW power plant project back on auction.

“We do not know when we will manage to sign the PPA. We are still waiting for a complete review and need some time to complete any terms that have not yet been agreed upon,” the Jakarta Post quoted PLN Procurement Director Supangkat Iwan Santoso as saying.

The USD 2-billion Jawa 1 power project, to be constructed within an independent power producer framework, was won by a Pertamina-led consortium comprising Marubeni and Sojitz Corporation, having presented the lowest price per kWh.

Should PLN call for a new tender, the runner-up partnership between Adaro Energy and Sembcorp of Singapore will be offered the chance to take over. A tie-up between Rukun Raharja and Mitsubishi Corporation had also been vying for the contract.

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