Korean Economy News
Doosan Heavy signs MoU to build $1.7 bn power plant in Indonesia

By Woo Je-yoon and Minu Kim

South Korea’s Doosan Heavy Industries & Construction announced on Monday it has signed a memorandum of understanding with Indonesia’s PT Indo Raya Tenaga (IRT) for the construction of Unit 9 and 10 of Suralaya Coal Fired Power Plant in Cilegon, Banten in Indonesia.

IRT is a special purpose company jointly established by PT. Indonesia Power, a subsidiary of state-run electricity provider Perusahaan Listrik Negara (PLN) and petrochemical firm PT. Barito Pacific.

The MoU was signed during the Korea-Indonesia Industrial Cooperation Forum held in Seoul timed with Indonesian President Joko Widodo’s state visit to South Korea.

The 1,000 MW coal-fired power plant project will use an ultra-super critical system, an eco-friendly high-efficiency power generation technology to save fuels and reduce pollution and other environmental impacts.

The total cost of Suralaya Power Plant construction is 1.9 trillion won ($1.68 billion), with the order involving Doosan Heavy Industries valued at around 1.5 trillion won.

Doosan had been chosen as a preferred EPC (Engineering, Procurement and Construction) bidder last June.

“With this MoU, we will be able to further strengthen our partnership with the Indonesian government and clients, and increase our contribution to Indonesia`s efforts to meet its electricity needs,” said an official at Doosan Heavy Industries.

On Tuesday, shares of Doosan Heavy Industries & Construction fell 1.99 percent to close at 14,800 won in Seoul trading.

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