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Groundbreaking of IPP Kendari-3

PT DSSP Power Kendari ("DSSP") has entered construction phase of coal-fired power plant IPP Kendari-3 with capacity of 2 X 50 MW ("PLTU") located at Tanjung Tiram, South Konawe, Southeast Sulawesi.

On September 8, 2016, DSSP held groundbreaking ceremony of PLTU construction. The ceremony was attended by among others, Southeast Sulawesi Deputy Governor H. Saleh Lasata, South Konawe Regent Surunuddin Dangga, Kendari Mayor H. Asrun, Chief of Power Plant Installation Agus Bahagianto (representative of Ministry of Energy & Mineral Resources), Chief of PLN’s IPP Division Hernadi Buhron (PLN representative), President Director of PT Dian Swastatika Sentosa Tbk Krisnan Cahya, President Director of DSSP Otto, Director of Jiangxi Jianglian International Engineering Co., Ltd. Tan Shenghui, and Director of China Gansu Internasional Qiao Gangmin.

"We hope, that the construction of IPP PLTU Kendari-3 can be completed in 3 years and the commercial operation can be commenced  in the beginning of 2019", said Otto, President Director of DSSP

Untill now, DSSP has completed land clearing and basic design of PLTU. DSSP has appointed Jiangxi Jianglian International Engineering Co., Ltd. (China), as the supplier for PLTU machinery and equipment.

This PLTU project is the second IPP project owned by PT Dian Swastatika Sentosa Tbk, which will supply electricity to PLN for 25 years based on Power Purchase Agreement signed on May 2015.

Total investment value of the PLTU is approximately USD 200 million. The PLTU project has secured financing facility from China Development Bank Corporation with amount of USD 150 million.

IPP PLTU Kendari-3 project is a part of 35,000 MW Mega Project planned by Indonesia government to increase electrification ratio in Indonesia.

"We hope with the operation of PLTU Kendari-3, Indonesia's electrification ratio, especially in Southeast Sulawesi region, can improve, and will stimulate economic growth in the region", said Otto.

PT DSSP Power Kendari was established in 2015 and is a subsidiary of PT Dian Swastatika Sentosa Tbk - business pillar of Sinarmas group in energy and infrastructure. PT Dian Swastatika Sentosa Tbk currently has three IPP projects, i.e. IPP Sumsel-5, IPP Kendari-3, and IPP Kalteng-1. Besides IPP projects, PT Dian Swastatika Sentosa Tbk also has captive power plants located in Tangerang, Serang, and Karawang.