• Tanjung Jati B Coal Fired Power Plant, Jepara, Indonesia



In 1994, PLN signed a Power Purchase Agreement (PPA) with PT HI Power Tubanan to build the 2x660 MW net Tanjung Jati B coal fired power plant. The Engineering, Procurement, and Construction (EPC) contract was awarded to Sumitomo Corporation (SC) and manufacturing commenced in 1996. However as consequence of the Asian economic crisis, construction work was suspended in June 1998.

In late 1999 early 2000, in an improving and more buoyant economic climate, discussions commenced to investigate ways of restarting and completing the project. In 2001 the Indonesian Government expressed its support for the proposals and scheme. In march 2002 a Finance Lease Agreement was signed between PLN and the Sumitomo Group, the final Settlement date being July 2003. To facilitate the renewed construction, plant ownership, Sumitomo formed a Special Purpose Company, "PT Central Java Power".

After completion of Plant construction, testing and commissioning, the two units comprising Tanjung Jati B achieved commercial Operation in October and November 2006. Susilo Bambang Yudhoyono, the President of Indonesia officially opened the plant on 14th October 2006.

Tanjung Jati B Power Plant is administered through a Finance Lease Agreements (FLA). Ownership is maintained by Central Java Power as the Lessor. PLN ( Persero) as the Lessee, have created a subsidiary business unit PT PLN (Persero) Pembangkitan Tanjung Jati B, to fullfil all FLA obligations and to administer the OM & F (Operation Maintenance and Fuel) contract. AN OM & F contract has been developed and sub contracted in part for the Operation & Maintenance to PT TJB Power Services (a corporation which includes PT Medco Power Indonesia).