Siemens secures $248m Indonesian power plant contract

15 May 2003 – Indonesian state electricity firm PLN signed a $248m contract with a consortium led by Siemens AG on Wednesday to build a power plant on the outskirts of Jakarta.

Siemens will build six units of 143 MW each for the gas-fired Muara Tawar power project. “All six will be completed in 14 and a half months,” said Juergen Lagleder, head of Siemens Indonesia.

The signing ceremony for the contract – which was awarded to Siemens last month – was attended by visiting German Chancellor Gerhard Schroeder, who is on a tour of Southeast Asia.

The winning consortium includes UK construction firm Balfour Beatty and South Korea’s Samsung Corp. Samsung will take charge of the design and construction work of one of six turbines and incidental facilities. The project will begin in July and end in September next year according to its plan.

“This is an important energy project for Indonesia to fulfil the electricity needs of Java and Bali,” Indonesia Mines and Energy Minster Purnomo Yusgiantoro said.

The plant will be a separate facility to a 950 MW station that already exists at Muara Tawar.

Power demand in Indonesia is estimated to be growing around 10 per cent annually, and an estimated $28.5bn of investment in the power sector is needed by 2010 – a sum which the debt-laden PLN will be unable to provide.