Apr 4, 2011

Bakrie, Samsung to revive Tanjung Jati

PT Bakrie & Brothers Tbk (BNBR), parent company of Bakrie family, plans to revive its unfinished steam-fire power plant project Tanjung Jati A with capacity of 2x600 MW.
Since 1996, Tanjung Jati A projct has been initiated by Bakrie's subsidiary PT Bakrie Power which won the project with a consortium of PT Tanjung Jati Power Company.
Besides Bakrie Power, the consortium's members were PT Maharani Paramitra, Tomen Power Corporation, and International Power. However, several members of the consortium left behind Bakrie Power.
"If we stay with Japanese strategic partners, we will have difficulty as they ask the project to use imported components from Japan," said Bakrie & Brothers President Director Bobby Gafur Umar, as quoted by Kontan daily today.
To revive the project, Bakrie has set a strategic partnership with South Korean company Samsung C&T Corporation. "Tanjung Jati A's investment is about US$2 billion. Bakrie & Brothers will take the majority," he said.
Bakrie & Brothers has entered into memorandum of agreement with Samsung in February 2011 after both companies signed memorandum of understanding in October 2010.

Disclosure: No position at the stock mentioned above.

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