State electricity company PT PLN affirms its commitment to maintaining the investment climate in the domestic electricity sector following the completion of Mitsui & Co Ltd’s divestment from PT Paiton Energy.
Paiton Energy operates and manages coal-fired power plants in Indonesia with a total capacity of 2,045 megawatts (MW). Three coal-fired power plants operated by Paiton Energy in Probolinggo, East Java, are Paiton Units 7-8 with a capacity of 2×615 MW and Paiton Unit 3 with a capacity of 815 MW.
Gregorius Adi Trianto, PLN’s Executive Vice President for Corporate Communication, said that the company supports the government in maintaining investment climate in Indonesia through the approval of the foreign ownership transfer agreement for the Paiton power plants.
“As a state-owned enterprise [SOE], PLN is committed to supporting the government in maintaining the investment climate in Indonesia,” Adi said on Monday, May 6, 2024.
Mitsui’s management announced the divestment of its majority shares (36.260 percent) to RH International (Singapore) Corporation Pte. Ltd. or RHIS, a wholly-owned subsidiary of Thailand’s RATCH Group Public Company Limited. The remaining 9.255 percent of shares were divested to PT Medco Daya Energi Sentosa (MDES), a wholly-owned subsidiary of PT Medco Daya Abadi Lestari, as well as existing Paiton shareholders affiliated with the Panigoro Family, PT Medco Energi Internasional (MEDC).
The sale of Mitsui’s shares to these two companies amounted to approximately 109 billion yen or equivalent to Rp11.31 trillion. Regarding the operational plan of the power plants, Adi said that the supply plan would be adjusted according to the needs of the Java, Madura, and Bali electricity systems.
The three Paiton coal-fired power plants are guaranteed by long-term power purchase agreements with PLN, with contracts scheduled to expire in 2042.
