State-owned construction firm PT PP (PTPP) has secured a new contract worth Rp3.35 trillion (US$206 million) to build a combined cycle gas turbine power plant (PLTGU) for State electricity company PT PLN in Batam, Riau Islands.

The project, located in Kabil Industrial Estate, will have a capacity of 120 megawatts (MW) using a configuration of two gas turbines, two heat recovery steam generators (HRSG), and one steam turbine. It will be developed under a joint operation (JO) scheme, with PTPP holding an 80 percentage share.

As of August 2025, PTPP’s total new contracts have reached Rp14.78 trillion (US$912.35 million), up from Rp11.79 trillion as reported in July. This represents 53 percent of the company’s Rp28 trillion full-year target.

“This project marks a strategic step to strengthen our presence in the energy sector. With experience from PLTGU Tanjung Uncang Batam and PLTGU KDL Cilegon, we are confident in delivering the Batam PLTGU on time, with high standards, while supporting efficient and environmentally friendly electricity supply,” PTPP Corporate Secretary, Joko Raharjo, said as quoted in a disclosure to the Indonesia Stock Exchange (IDX) on Monday, August 25, 2025.

The company expects the Batam PLTGU to act as a catalyst for industrial growth and competitiveness in Batam and the wider Riau Islands.

Funding sources for PTPP’s new contracts in 2025 comprise 42.5 percent of private projects, 38.9 percent of state-owned enterprises (SOEs) projects, and 18.6 percent of government projects. By sector, mining contributed the largest share at 24.4 percent, followed by buildings (21.3 percent), ports (19.8 percent), and roads and bridges (19.3 percent).