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PLN to generate 1,695 MW from Rp 16.9 trillion projects

State electricity firm PLN targetsA�adding 1,695 megawatts (MW) of electricity toA�its Java-Bali system within the next two years through the development of three power plants in the western part of Java island with a combined investment of Rp 16.9 trillion (US$1.24 billion).

The biggest contribution will come from the Java 2 combined-cycle power plant in North Jakarta, which will have a capacity to generate 880 MW once it is fully operational in May 2019. The investment for this project is estimated to reach Rp 6.2 trillion.

PLN has also begunA�the development of the Unit 4A�Lontar coal-fired power plantA�in Banten with a capacity of 315 MW and investment of Rp 6.8 trillion. Furthermore, it plans to start the construction of the Muara Karang combined-cycle facility worth Rp 3.9 trillion, which will have a 500 MW capacity, in North Jakarta early next year.

The Lontar and Muara Karang facilities are slated for completion in the third quarter of 2019.

a�?For these three projects, PLN will finance 30 percentA�through its own cash flow, while the other 70 percent will be funded by export credit agency Japan Bank for International Cooperation,a�? Robert Aprianto Purba, PLNa��s general manager for western Java, said recently.

PLN aims at increasingA�the electricity reserve margin, or the gap betweenA�capacity and peak demand, in its Java-Bali system to 55 percent byA�2019 andA�41 percent byA�2026, from only 27 percent this year.