ABMM prepared 50 million US$ for electricity projects

PT. ABM Investama TBK (ABMM) has been developing its businesses outside coal sectors such as electricity projects. It prepared 40 million US$ up to 50 million US$ to develop Independent Power Producer (IPP) projects. Yovie Priadi, Director of ABMM said that there are several tenders of IPP projects participated, both coal power plants and gas power plants. At least there are three locations being targeted for the projects, which are Sumatera, Bangka and Kalimantan. The total capacity of the projects is 300 mega watt (MW) up to 400 MW.

He explained that even though the global trade condition has been weak, the company keeps expanding especially the non-coal projects. However, he admitted that the projects from the State Electricity Company (PLN) tender have been running slow. “It is because PLN is being really cautious in making decision,” he said to KONTAN, on Monday (24/8). The weak condition of coal trade has made ABMM focus on expanding the power sector and mining contractor sector. This year, the company prepared 200 million US$ capital expenditure (capex) to work on that business.

ABMM has been expanding the electricity business through its subsidiary, PT. Sumberdaya Sewatama. Currently, Sewatama has also been accelerating the temporary power business. The capacity installed is up to 1.100 MW. ABMM has also been operating Steam Power Plant (PLTU) in Aceh with 15 MW capacity. Meanwhile, the production of coal sector is not really being expanded. During this first semester of this year, ABMM produced 3.4 million tons of coal, slightly higher than last year production which was 6 million tons.

ABMM will also try to reduce the production cost by using its own subsidiary as the contractor which is PT. Cipta Kridatama (CK). With that expansion, ABMM is aiming to achieve 10% increase from 2014 income which was up to 750 million US$.

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