Pembangunan Perumahan Tbk (PTPP) will inject capital amounting to IDR 745 billion to Meulaboh Power Generation (MPG) gradually. This capital investment is predicted to increase the company’s recurring income from the consolidated performance of its subsidiaries.
Lukman Hidayat, Director of Planning and Business Development at PTPP, said MPG is a joint venture between PP Energi with China Datang Overseas Hongkong Co Ltd (CDTO Hongkong) and Sumberdaya Sewatama (SS). MPG is building a 2×200 MW steam power plant (PLTU) with build, own, operate, and transfer (BOOT) scheme to PLN. The power plant is targeted to operate commercially by 2020.
PTPP, CDTO Hongkong, and SS have signed a power purchase agreement (PPA) with PLN for MPG in May 2017.
This is not a material transaction because the value of equity participation in MPG is not more than 20 percent of the company’s equity. Based on the financial statements as of June 2017, the equity reached IDR 11.7 trillion.
On Monday (25/9), PTPP dropped by 2.3 percent to IDR 2,510. (*)