China Development Bank has signed an agreement to provide Indonesia-based power producer Sumber Segara Primadaya a loan to build a coal-fired plant in Central Java.
The plant to be built in Cilacap will have a total capacity of 614MW, reported Jakarta Globe.
Sumber Segara president director Muhammad Rasul was quoted by the publication as saying that the project will be financed through a $700m loan from China Development Bank, as well as internal cash.
Rasul also said that the firm expects to receive another loan from state-controlled Bank Rakyat Indonesia for the project.
"The power plant construction will be completed within 36 months and is scheduled to commence operation in 2016," Rasul added.
Once completed, the power plant will be connected to the Java-Bali power grid, Rasul noted.
Perusahaan Listrik Negara (PLN), which provides power to the country’s 240 million people, currently has a generating capacity of 30,000MW.