The Company identified an opportunity for both coal industry and power industry in creating synergistic value by expanding downstream to the power sector. The government’s 35 GW power generation program provides opportunities for the growth in coal industry, which is still believed to be the main fuel preference. The program aims to boost the performance of national infrastructure and manufacturing sectors to increase Indonesia’s economic growth. The Company’s participation in the government program, among others, will be an opportunity for further business development in the energy sector portfolio incorporating both fossil-based and non fossil-based (renewables) with the goal of becoming an integrated energy company by 2020.
After having participated in a series of PT Perushaan Listrik Negara’s (Persero) (PLN) open tenders through the Independent Power Producer (IPP) scheme since 2014, on 14 July 2016, the Company, through subsidiary PT Gorontalo Listrik Perdana (GLP), signed a 25-year Power Purchase Agreement (PPA) with PLN for coal-fired power plant (CFPP) project with capacity of 2x50 MW (Sulbagut-1) located in the Gorontalo Province, Sulawesi. On 14 July 2017, exactly one year after the PPA signing, GLP reached its Financial Close with PLN. It was the first Financial Close completed in 2017 (outside of PLN expansion project) by any IPP that was right on schedule. Commercial Operating Date (COD) is expected in mid 2020. On 7 April 2017, another subsidiary PT Minahasa Cahaya Lestari (MCL), also signed a PPA with PLN to develop a 2x50 MW CFPP (Sulut-3) project located in North Sulawesi province, Sulawesi.