Malaysia to buy electricity from Indonesia’s Bukit Asam

Malaysia will buy a majority of the 1,200 megawatts of electricity produced by Bukit Asam's new power plant in Riau.

Bukit Asam and Indonesia's state utility company PLN signed an MoU with Malaysia’s Tenaga Nasional Berhad regarding the deal, said  Bukit Asam corporate secretary Hananto Budi Laksno .

The power plant will be located in Peranap, Indragiri Hulu district, near a coal mine that Bukit Asam operates.

“The MoU stipulates preparation for the establishment of three joint ventures, for developing part of the Peranap mine, to build a steam-fueled 2x600 MW power plant at the mouth of the mine and for the construction of a transmission line from Peranap to Malaysia,” Hananto said.

He said a large part of the Peranap mining venture will be developed to supply coal to the power plant, about 5 million to 6 million tons a year. Bukit Asam’s Peranap area has coal resources at 792 million tons and mined reserves of 367 million tons.

Hananto said the electricity produced by the power plant would be used to meet some domestic demand while the rest would be sent to Malaysia through an underwater transmission line.

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