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Pertamina to cooperate with Semen Indonesia on development in Aceh

Pertamina to cooperate with Semen Indonesia on development in Aceh Ulu Masen forest, Aceh, Indonesia (source: flickr/DFID, creative commons)
Alexander Richter 26 Apr 2016

As part of a wider arrangement, Pertamina and Semen Indonesia are going to cooperate on geothermal development in Aceh to supply electricity to factories of Semen in the region.

As part of a wider cooperation agreement signed by the two state-owned firms Pertamina and Semen related to gas supply, the firms also agreed on a cooperation on geothermal development in Aceh.

Pertamina would build a 50 MW geothermal power plant in Aceh. The electricity produced from the plant would be piped to Semen Indonesia’s factory in Aceh.

Dwi explained that this was in compliance with the government directive to reduce the use of fossil fuel. He also said that this partnership would be able to ascertain which energy maximises the efficiencies for the company and environment. “To see which energy is the most efficient, and to look at the environment aspect,” Dwi said.

Meanwhile, Suparni said that as well as building solid synergy between the two companies, the partnership would support his company’s strategic and operational plans. Semen Indonesia’s massive fuel consumption demands a guaranteed energy supply.

Semen Indonesia is also developing several new factories. “So with Pertamina, we’ll be preparing for that, planning the supply of fuel, lubricants and other products. We’ll also need geothermal power plants for [our] massive energy requirements,” Suparni said.

Semen Indonesia is completing development of its two factories in Rembang and Indarung VI, Padang, each with a production capacity of 3 million tons per year. Also, in March Semen Indonesia signed an agreement to form a joint venture with Samana Citra Agung, a cement producer in Pidie district, Aceh.

Source: KataData