State-owned cement producer PT Semen Baturaja Tbk is seeking foreign vendors and suppliers to provide technology and equipment for its 20 MW (megaWatts) solar power plant in Baturaja, South Sumatra.
Established in 1974, the company’s total production capacity is currently 3.85 million tons of cement per year, thanks to the operation of its Baturaja II plant in 2017.
Company Corporate Secretary Doddy Irawan said the planned solar power plant was still in the bidding process to find the EPC (engineering procurement and construction) firm that meets the qualifications.
“In principle, Semen Baturaja is open to all vendors so long as they meet the qualifications and provisions,” he told Indonesia Business Post on May 12, 2022.
The solar power plant’s construction will be based on proven technology and emphasize local content.
Irawan also said that the solar energy project would cost the company approximately US$18 million. The company’s internal cash flow will provide the funds to construct the power plant. Semen Baturaja does not intend to seek bank loans from foreign banks.
The plan to construct the solar power plan has been on the table since 2021 and is expected to complete at the second quarter of 2022. Semen Baturaja already has 33 hectares of land in Baturaja, Ogan Komering Ulu, South Sumatra, for the plant.
The area was chosen due to its land availability, shading potential, access to the roof and water and topography.
The solar power plant will supply the company’s internal energy needs. The power plant can produce 28,058 MWh (megaWatt hours) of electricity in its first year of operation. Promoting energy efficiency, carbon tax incentives and the optimization of eco-friendly energy consumption will significantly contribute to the company’s future.
According to Irawan, Indonesia is attempting to use 23% renewable energy by 2025. As a tropical country, the largest archipelago is located in the equator ideal to have alternative energy sources.
“From an infrastructure perspective, Indonesia has sufficient infrastructure to support solar power plants’ use, operation, and growth,” he added.
