Jawa Power Plant Project Passes KDI's Feasibility Study

Officials of Doosan Heavy Industries and Construction and Indonesia's Indo Raya Tenaga (IRT) pose for a photo after signing a memorandum of understanding (MOU) on building JAWA coal power plants Nos. 9 and 10 at the Korea-Indonesia Industrial Cooperation Forum held at Lotte Hotel in Seoul on Sept. 10, 2018.

The Indonesia Jawa Thermal Power Plant Construction Project has passed a preliminary feasibility study by the Korea Development Institute (KDI), allowing Doosan Heavy Industries & Construction to promote a 1.6 trillion won worth power generation project that it won in March last year.

The Jawa power plant project is jointly promoted by Korea Electric Power Corp., PT Indonesia Power, which is a subsidiary of PT PLN, Indonesia’s state-run electricity company, and Barito Pacific, an Indonesian company engaged in power generation and petrochemical production.

The US$3.2 billion project is designed to build two 1 GW coal-fired power plants near Jakarta.


The project failed to pass KDI’s first preliminary feasibility study conducted last year. The KDI categorized it as a gray zone project, which means that it lacked business feasibility.

In response, KEPCO applied for a preliminary feasibility study again, saying that the KDI's assessment did not properly take into account the characteristics of the overseas project promoted through project financing.

This time, the project received 0.549 in a general evaluation during a KDI review on June 5, topping the cut-off point of 0.5.

The Jawa Unit 9/10 project is a national strategic infrastructure project under the Indonesian government's power supply and demand plan, and Indonesia Power is currently waiting for the go-ahead to start construction after clearing the site and opening an entry route to it.

The outcome of the KDI’s preliminary feasibility study is a welcome rain for Doosan Heavy Industries and Construction which is undergoing an order drought. In March 2019, the company formed a consortium with Indonesia's state-run builder HK to win a contract to build the two power plants.

Doosan Heavy plans to produce and supply two ultra super critical (USC) 1,000 MW units that meet global environmental standards by 2024.

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