SMGR is Investing IDR638bn in Power Plant

Semen Indonesia (SMGR IJ, BUY, TP: IDR18,000) is planning to invest IDR638bn to build a waste heat recovery power generation (WHRPG) that has a capacity of 30.6 MW and located nearby Tuban factory. This project will be a joint operation between SMGR and JFE Engineering from Japan. This power plant is built as an efficiency initiative to reduce the energy dependency from state-owned power plant company (PLN) as well as to anticipate the rising electricity cost. The project construction will take 24 months with operation targeted in 2016.