Indonesia to miss funding deadline for $5.7 billion power plant

Next week’s deadline to provide initial funding for a US$4 billion (S$5.7 billion) power plant in Indonesia will likely be pushed back again as the government tries to resolve long-running land disputes, company officials said.

Japan’s Electric Power Development Co Ltd (J-Power) and other investors have until Oct. 6 to decide whether to build the 2,000-megawatt coal-fired power plant in Central Java.

It would be the biggest generator of its kind in Southeast Asia. “The process of land acquisition is still ongoing,” said Murtaqi Syamsuddin, director of investment planning at Indonesian state-owned power firm Perusahaan Listrik Negara (PLN), which will be the main buyer of the electricity. “It seems we will need more time since the Oct. 6 financial close can’t be met.”

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Posted September 29, 2015 by repit in News

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