REPUBLIKA.CO.ID, JAKARTA -- PT Indo Raya Tenaga (Indonesia) agreed on a commitment with Doosan Heavy Industries and Construction (South Korea) for the construction of Unit 9 and 10 of Suralaya Coal Fired Power Plant in Banten. The signing of the memorandum of understanding was carried out at the Korea-Indonesia Industrial Cooperation Forum held at Lotte Hotel, Jung-gu, Seoul.

"This MoU is very meaningful. We hope that the construction of Unit 9 and 10 of Suralaya Coal Fired Power Plant will run smoothly in the future," President Director of PT Indo Raya Tenaga Sapto Aji Nugroho in a statement received here on Monday.

Nugroho said that Doosan had been chosen as the EPC (Engineering, Procurement and Construction) contractor for Unit 9 and 10 of Suralaya Coal Fired Power Plant in Banten. In the proposal, Doosan has included K-Exim and K-Sure, South Korean export financing institutions.

A leader of EPC Business Group Doosan Heavy Industries & Construction, Yun Seok Won, said that the total cost of Suralaya Power Plant construction was estimated at 1.9 trillion Won. However, the value of the work unit involving Doosan Heavy Industries and Construction is projected to reach around 1.5 trillion Won.

"With this MoU, we will be able to further strengthen our partnership with the Indonesian Government and clients," he said.

Through the implementation of the project, Doosan plans to increase its contribution to Indonesia's efforts to meet its electricity needs. "We plan to expand it. The construction of Unit 9 and 10 of Suralaya Coal Fired Power Plant will be started in the first quarter of 2019," he stated.

Earlier, President Joko Widodo (Jokowi) met four leaders of large South Korean companies, including Vice Chairman of Lotte Group Hwang Kag-gyu and Hyundai Group Vice Chairman Chung Ei-sun. The meeting was held on the sideline of his state visit to South Korea on Monday (Sept 10) morning.

Jokowi also received CJ Group Chairman Lee Jae-hyun and Posco CEO Oh-Joon Kwon. According to cabinet secretary statement, Lotte Group leader Kwang Kag-gyu has stated the company’s intention to try to increase investment in Indonesia.

Meanwhile, Foreign Affairs Minister Retno LP Marsudi said that there would also be several cooperation agreements to be signed in the meeting. She also stressed the big companies have been running the business in Indonesia since long time ago.

“So thee meeting is usually to talk about expansion, but beyond that, Ambassador and the team have worked very hard there will be some MoU B to B that will be signed and from the value side is quite large,” Retno said.

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