PLN planning and risk management director Murtaqi Syamsuddin was quoted by the JakartaGlobe as saying that the opportunity has been made available to interested bidders.

"The winner will be announced by early next year, so that the construction can start," Syamsuddin said.

PNL will supervise the construction of the 200MW power plant, while the winner will provide the funding for the engineering, procurement and construction.

Syamsuddin said this project comes amid plans to convert Arun liquefied natural gas plant into a receiving terminal and regasification facility.

In May, the company has signed a memorandum of understanding with oil major BP under which daily 230m standard cubic feet of natural gas will be allocated to PLN.

After completion of the project in 2014, the utility intends to close down the operation of a 150MW diesel-fuel power plant in Aceh.