State-run cement maker PT Semen Indonesia is considering developing a new 200-megawatt (MW) power plant in a bid to further slash the company’s electricity costs.
Semen Indonesia finance director Ahyanizzaman said on Friday the company would build the power plant in Tuban, East Java, where 60 percent of the cement producer’s electricity consumption comes from.
“The preferred location [to build the power plant] will still be in Tuban as its electricity consumption is the biggest. So, the power plant will significantly lower costs,” he said.
The electricity price from state-run electricity firm PT Perusahaan Listrik Negara (PLN) is currently
Rp 1,012 per kilowatt hour (kWh). On the other hand, Semen Indonesia spent only between Rp 800 and Rp 900 per kWh for its production activities in Tonasa, South Sulawesi, by utilizing its own power plant there, Ahyanizzaman explained.