The Company directly operates 4 (four) captive power plants located in Tangerang, Serang, Karawang-1 and Karawang-2 with a total capacity of 300 MW. IPP PLTU Sumsel-5, IPP PLTU Kendari-3, and IPP PLTU Kalteng-1 are carried out by Company’s subsidiaries.
In 2018, power generation business line recorded revenues of USD 513.5 million, only reaches 90.9% of the target of USD 564.7 million in 2018.
Tangerang and Serang power plants produce electricity and steam for PT Indah Kiat Pulp & Paper Tbk, while Karawang-1 and Karawang-2 power plants produce electricity and steam for PT Pindo Deli Pulp & Paper Mills.
Through PT DSSP Power Sumsel, a subsidiary, the Company operates IPP PLTU Sumsel-5 with total capacity of 2 x 150 MW located at Musi Banyuasin, South Sumatera. In 2018, IPP PLTU Sumsel-5 able to improve availability factor by 17.4% if compared to that of previous year.
Through PT DSSP Power Kendari, a subsidiary, the Company developed IPP PLTU Kendari-3 with capacity of 2 X 50 MW located at South Konawe, South-East Sulawesi. The construction of IPP PLTU Kendari-3 had reached 96% at the end of 2018. Boiler unit 1 had been constructed and tested. Meanwhile boiler unit 2 was in the preparation stage for testing. IPP PLTU Kendari-3 is expected to begin its commercial operation in 2019.
Through PT SKS Listrik Kalimantan, a subsiadiary, the Company developed IPP PLTU Kalteng-1 with capacity of 2 X 100 MW located at Gunung Mas, Central Kalimantan. Overall development progress for IPP PLTU Kalteng-1 by the end of 2018 had reached 90%. The Company uses third party services to perform inspection of several power generation equipment to minimize operational risk. IPP PLTU Kalteng-1 is expected to begin its commercial operation in 2019.
For power generation business prospect, the government is still focused to finish the 35,000 MW power projects. Based on PLN’s business plan 2019, around 47.8% or 27.1 GW out of total capacity of 56.4 GW is planned to be supplied from coal-fired power plants. While the majority of new power plants is coal-fired, the Company expects the synergy between coal business and power generation business. The Company will review various power project opportunities.