Indonesia Power awards GE, Marubeni and Hutama Karya consortium with EPC contract for Tambak Lorok Combined Cycle Power Plant Block 3

20 July 2017

Indonesia Power(IP), a wholly owned subsidiary of PT. PLN (Persero) (“PLN”), announced today that it has awarded General Electric (GE),  Marubeni Corporation (“Marubeni”) and PT. Hutama Karya (“HK”) consortium an EPC (Engineering, Procurement and Construction) contract for the Tambak Lorok Combined Cycle Power Plant Block 3 Project (“Tambak Lorok”). The power plant, which will commence operation in mid 2020, is expected to add approximately 780 MW of electricity to the Indonesia grid, equivalent  power needed to supply up to five million Indonesian homes.  In addition, Tambak Lorok will be the largest power project developed in IP’s history and one of the first in the region to use GE’s latest HA gas turbine technology.

Tambak Lorok 780 MW combined cycle power plant is yet another important milestone in Indonesia’s 35,000 MW program to increase electricity supply for the country,” said Sripeni Inten Cahyani, President Director PT Indonesia Power. “Tambak Lorok will be the biggest power plant that Indonesia Power is developing and the first to use the latest HA gas turbine. We are pleased to select GE, Marubeni, and Hutama Karya as the EPC in this project, bringing one of the most efficient gas turbines to Indonesia for reliable and more affordable electricity for the Java grid.”

Tambak Lorok will be powered by GE’s largest and most efficient gas turbine, the 9HA.02, as well as GE’s D650 steam turbine, heat recovery steam generator (HRSG) and balance of plant equipment. The plant will be delivered in a turnkey combined cycle configuration using GE’s extended scope technology, allowing Indonesia Power to start commercial operation faster and simpler than earlier power plant designs.

“Our HA power plants are more flexible and efficient than ever before, and turnkey projects are changing the way power is delivered around the world,” said Handry Satriago, President & CEO of GE Indonesia.  “We’re thrilled to work with our long-time customer Indonesia Power and our EPC consortium partners, Marubeni and Hutama Karya, to help bring more flexible, simple and efficient power to the country for many years to come.”

Takashi Fujinaga, Senior Operating Officer Power Business Division, Marubeni Corporation, said, “Marubeni is a committed partner to contribute to the development of power supply in Indonesia as both an EPC contractor and an IPP developer. We are excited to work with GE and Hutama Karya to bring the one of the most efficient gas turbine technologies in the world to Indonesia.”

I Gusti Ngurah Putra, President Director PT Hutama Karya, said, “This is an important milestone for Hutama Karya in our commitment to support Indonesia’s power development and economic growth.”

In addition to the technology contract, Indonesia Power has signed a multi- year service agreement with GE’s Power Services for 15 years. The agreement includes training and maintenance management to enhance operational performance and increase the efficiency and reliability of Tambak Lorok plant. The training will support skills development and knowledge transfer to improve the capability of IP’s operations team.

GE Capital’s Energy Financial Services is working closely with PLN,  Indonesia Power and the project’s financial advisors to help secure the needed financing for the projects, including financing from export credit agencies and other debt providers.   With the combined capabilities across its Power and Capital portfolio GE is able to provide complete customer solutions including strategic industrial financing expertise and third-party financing, in addition to technology and services.

GE was recognized for powering the world's most efficient combined-cycle power plant in 2016 with its HA technology.  The HA technology also offers industry-leading flexibility - capable of delivering full power to the grid in under 30 minutes – and provides cleaner, more reliable and sustainable power to customers.  With more than 65 units ordered to date across four continents, the HA is the world’s fastest growing fleet of gas turbines.