Doosan Heavy Industries & Construction Co. announced on Sept. 10 that it has signed a memorandum of understanding with Indonesia’s PT Indo Raya Tenaga (IRT) to build Jawa 9 and 10 power stations.
IRT is a special purpose entity jointly established by PT Indonesia Power, a subsidiary of Indonesian electricity utility Perusahaan Listrik Negara (PLN), and petrochemical firm PT Barito Pacific.
The MOU was signed on the sidelines of the Korea-Indonesia Industrial Cooperation Forum, which was held in Seoul on Sept. 10 ahead of a summit between Indonesian President Joko Widodo and his South Korean counterpart, Moon Jae-in. The ceremony was attended by Indonesia's Industry Minister Airlangga Hartarto, Indonesia's Investment Coordinating Board Chief Thomas Trikashi Lembong, IRT CEO Sapto Aji Nugroho, South Korea's Trade, Industry and Energy Minister Paik Un-kyu and Doosan Heavy Engineering Procurement Construction (EPC) Group Head Yoon Seok-won.
Under the agreement, Doosan Heavy will establish two 1,000-megawatt ultra-supercritical (USC) Jawa 9 and 10 power power plants in Cilegon of Java's west coast, only 120 km from Jakarta, the capital of Indonesia.
The total construction cost is 1.9 trillion won (US$1.68 billion) and the deal won by Doosan Heavy is worth 1.5 trillion won (US$1.33 billion). Doosan Heavy participated in the international competitive bidding to win the order to set up Jawa coal power plants and received a letter of intent (LOI) after being selected as a preferred bidder in June.