SOUTH Korean company Hanlim Power Corporation (Hamlin) is moving ahead with plans to build a 4,800MW gas-fired power plant in North Sumatra, local press in Jakarta have reported.

PT Hanlim Power Corporation, the Indonesian subsidiary of Hamlin, signed a deal with North Sumatra governor Edy Rahmayadi on August 26, agreeing to expedite the issuance of land and administrative permits for the plant.

The power plant will be located in Batubara Regency, and will provide power for the Sei Mangkei Special Economic Zone (SEZ) and Kuala Tanjung Industrial Zone. The power produced will be sold directly to the two zones, rather than via Indonesia's distribution monopoly PLN under its electricity procurement plan (RUPTL).

Local press reported Edy as saying that that construction will begin in January 2021 at the latest, with the plant being built in three stages of 1,600MW. Full capacity operation is expected before Edy’s term ends in September 2023.

Indonesia has ambitious plans for its SEZs and industrial zones.

In his annual budget presentation speech on August 14, Indonesian President Joko Widodo set out plans to meet the challenge of the corona pandemic recession, including increased deficit spending, encouraging private sector investment, and reducing import costs via greater self reliance.

These plans include nickel ore processing for the domestic lithium battery industry, and the development of around 30 industrial parks under the 2020-2024 National Medium-Term Development Plan.