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The new Industrial Park Plan with Pre – Owned 400 MW Coal Fired Power Plant in South Sulawesi Province, Indonesia

PT. RAJAWALI UTAMA NUSANTARA (RUN) was established in the year of 2014 in Makassar City, South Sulawesi Province, Indonesia and has been registered under the Indonesian Law. RUN is becomes an answer to the increasing pressure as a result of rapid development in all sectors, such as in the industrial sectors, commercial sectors, health sectors, education sectors, the tourism sectors, housings and so on. This rapid development is in direct need of an industrial park area.

RUN intend to establish an Industrial Park located in South Sulawesi with the mission to overcome the lack of industrial electricity supply, hence to build and operate a 400 MW coal – fired power plant.

Most of the power produced would be used within the Industrial Park by incumbent industries and the excess power would be sold to Perusahaan Listrik Negara (PLN), the Indonesian State-Owned Electricity Company.
The power sector in Indonesia is organized under the Ministry of Energy and Mineral Resources. PLN is responsible for the majority of Indonesia’s generation and is the monopoly provider of transmission, distribution and supply of electricity in Indonesia. This plant comprises one of the projects included in the 35,000 MW of the PLN Crash Program to cope with the electric power demand growth in Indonesia, particularly in Java island.

Sulawesi island has been allocated 10,000 MW of the program. PLN is promoting the development of the Power Plant as a private sector project and will award a Built Own Operated (“BOO”) concession to develop and operate the Plant to a private sponsor. A private sponsor with PLN through its subsidiary shall establish a project company (the Seller) that will finance, design, procure, construct, test, commission, operate and maintain the Plant and also will cover auxiliary equipment and supporting infrastructure to enable reliable base load of electricity generation for the system.

In Indonesia, especially Kalimantan Island, has a large reserve of coal resources. Approximately 60% of coal mined in Indonesia is used for power generation. While other forms of power generation are found in greater Indonesia (e.g. Geothermal, Hydro, Oil & gas), South Sulawesi depends on coal for base load generation.

RUN will be responsible for arranging and maintaining a reliable coal supply for the plant. Coal supply agreement might be negotiated on terms acceptable to local coal mine as ensure reliability of supply at market prices, and following procedures specified under the Power Purchase Agreement (“PPA”) Considering electricity situation as mentioned above in this time is critical, this project is expected to be in commercial operation in the middle of year 2020. Coal could be sourced from several mines located in East and South Kalimantan.  Indonesian coal typically has high calorific value and low ash content, resulting in lower input and processing costs, and lower environmental impacts respectively.
The power plant is intended to be located in close proximity to the new port and along the coastline in the South Sulawesi Province. This location is ideal for receiving coal shipments, access to cooling water from the ocean, and in close proximity to large electrical loads, thus reducing operational costs and electrical losses.

The proposed power plant shall have a maximum capability of 380 MW and will connect to PTN’s 150kV Transmission system. A permanent investment of € 266 million is estimated for the core generating plant. This price excludes other capital costs such as Balance of Plant (BoP) equipment, land acquisition and establishment of localized infrastructure (roads, water supply and processing infrastructure, electrical  distribution infrastructure and so on). Additional costs could run to an additional € 50 million, thus bringing the total investment to € 316 million.

The recommendations for design and execution of the plant construction include :

1 review of governmental policies pertaining to domestic power production using coal as a  resource,
2 assessment of new and soon to be established competitors,
3 a review of the existing electrical, water and logistics infrastructure in the local area, and
4 identification of required and related infrastructure for the successful operation of the processing plant.


Keywords: capacity, design, execution, yield, investment, operation, infrastructure.

Credit :
1 World Consultants
Mohamed Peer B.Sc. (Elec) Pr. Eng.
Fatima Peer B.Sc. (Hons) Pr.Sci.Nat., IAIAsa


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