YTL Power International will build the 1320MW Tanjung Jati A coal-fired power plant in Cirebon, West Java, Indonesia, with an investment of $2.7bn.

power plant

The development is a part of a long-term deal signed by YTL Power to supply power from the proposed plant to Indonesian Government-owned utility PT PLN (Persero).

As per the 30-year power purchase agreement (PPA), YTL Power International’s 80%-owned subsidiary PT Tanjung Jati Power will sell energy and capacity generated from the facility to Persero upon completion.

The company has now signed an amended PPA which was signed initially for the proposed power generation project in April 1997.

Comprising two units of 660MW capacity each, the power plant will feature new coal-fired technology. It is expected to be one of the most efficient plants in the country.

YTL Power said in a statement: "The PPA will be for a term of 30 years expiring 2051, on the thirtieth anniversary of the anticipated commercial operation date of the plant."

The project represents YTL Power’s second investment in Indonesia. The first project for the firm is 1,220MW Jawa Power generation facility.

Earlier this year, the government has announced its plan to have 35,000MW of installed power generation capacity in the next five years to address power crises.

The program is intended to stimulate strategic sectors, particularly in energy market, in order to achieve economic independence.

YTL Power managing director Tan Sri Dr Francis Yeoh said: "YTL Power is pleased to be able to assist in realizing [Indonesian] President Joko Widodo’s bold vision of putting 35,000MW on the grid in the next five years.

"We are very much looking forward to working with PLN to get this project built and exporting much needed energy into the grid."

Image: Indonesia plans to have 35,000MW of installed power capacity in next five years. John Kasawa/