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Power Generation

The Company directly operates 4 (four) captive power plants located in Tangerang, Serang, Karawang-1 and Karawang-2 with a total capacity of 300 MW. Meanwhile, through its subsidiary, the Company also operates IPP PLTU Sumsel-5 in South Sumatera with a capacity of 2 X 150 MW. 

Tangerang  and  Serang  power  plants  produce  electricity and steam for PT Indah Kiat Pulp & Paper Tbk, while Karawang-1 and Karawang-2 power plants produce electricity and steam for PT Pindo Deli Pulp & Paper Mills. In 2017, all captive power plants generated 1.5 million MWh electricity, and 14.3 million GJ steam

With total power plant capacity of 600 MW in operation and total power plant capacity of 300 MW under development, power generation business contributed revenues of USD 375.6 million in 2017, increasing 103.4% compared to revenues in 2016 of USD 184.7 million.

From IPP PLTU Sumsel-5, the Company recorded revenues of USD 79.1 million. Availability Factor of IPP PLTU Sumsel-5 in 2017 was recorded at 64.5%, lower than the target of 80.0%. Lower Availability Factor was mainly caused by the maintenance of boiler unit 1 and unit 2 and turbine repair. The Company will continue to improve its operational performance by refining operation and maintenance systems of power plant machinery in order to achieve the target of Availability Factor.

The Company keeps developing existing IPP PLTU projects and will also explore potential new power projects

The construction of IPP PLTU Kendari-3 has reached 71%  at the end of 2017. Design adjustment and specification change of several power plant components to improve efficiency and durability of the power plant had caused the construction progress lower than the initial  target of 81%.  Until the end      of 2017, infrastructure construction of IPP PLTU Kendari-3 consisted of, among others, jetty terminal, conveyor, dormitory, boiler and turbine foundation.

Meanwhile, for IPP PLTU Kalteng-1, limited transportation facilities for power plant machinery and equipment had caused the construction progress of IPP PLTU Kalteng-1 only reach 43% versus construction target of 56%. The transport of power plant machinery and equipment faced challenges because it depended on river level condition, considering the immense weight of the machinery and equipment such that it could not be transported by land. Furthermore, bad road condition to project site also became special challenge in carrying construction material to project site. Until the end of 2017, the completed infrastructure for IPP Kalteng-1, among others, consisted of 60-meter bridge and construction of access road from the main road to project site.