REPORT 02 Solutions through Innovation ―Power Plant Lease Project in Indonesia

In Indonesia, a country facing severe power shortages as a result of its rapid economic growth, Sumitomo Corporation completed the construction of two new power generation plants on Java Island in January 2012. With a total power generation capacity of 2,640 mega watts (MW), the new plants together with the two existing plants located nearby will serve as a major power generation source in the country.(Posted on March 12, 2012)

Demonstrating the excellence of Japanese corporations―Relentless efforts to reduce power shortages in Indonesia

  • 1
  • 2
  • 3
  • Next

President Yudhoyono’s kudos for early project completion

At that moment, the ceremony venue was filled with a hail of applause.

On December 28, 2011, the Ministry of Energy and Mineral Resources of Indonesia hosted ceremonies to celebrate the completion of three new thermal power plants in the country. The ceremonies were broadcast on TV. The participants of the ceremonies included Indonesian President Susilo Bambang Yudhoyono, who praised one of the three new plants for its completion three months ahead of schedule and for its performance, which was higher than that stated in the contract.

The name of the new power plant is the Tanjung Jati B Coal-Fired Power Plant (“TJB”), a large-scale power plant located in a coastal town in Jepara Regency. From Jakarta, the nation’s capital city, the power plant is an hour’s flight away followed by a three-hour drive.

The construction of TJB was managed by Sumitomo Corporation and its fully-owned local subsidiary, PT. Central Java Power (“CJP”). The actual operator of TJB is PT. Perusahaan Listrik Negara (“PLN”), a state-owned electricity company. Specifically, it was TJB Unit 3 that was recognized by President Yudhoyono in his speech at the completion ceremony. The new unit, located next to Units 1 and 2 which were already in operation, began operating in October 2011.

TJB Unit 4 also started operating in January 2012. To mark the completion of the new units, PLN hosted a ceremony on February 6, 2012 with the presence of Indonesian government officials as well as representatives of Japanese corporations and organizations involved in the project such as Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI), commercial banks, and Sumitomo Corporation. The list of the ceremony participants clearly indicated the strong partnership between the Japanese public and private sectors that had made the project a reality.

As a result of the addition of Units 3 and 4, TJB boasts a total power generation capacity of 2,640 MW, thus becoming a major power station in the country. The plant supplies enough electricity to meet more than 10% of the power demand in the Java and Bali areas, which represents the majority of nationwide power consumption.


CJP President Director Koji Endo said, “Hearing President Yudhoyono’s praise and the continuing roar of applause, I felt my eyes growing moist. The difficulties that I went through to come this far came to mind. And I felt a strong sense of pride in my work”

On the day after the ceremony, Sumitomo Corporation President and CEO Susumu Kato and others visited Indonesia’s presidential office to meet with President Yudhoyono. During the meeting, the president again expressed his gratitude for the early completion of the new TJB units and showed his strong confidence in Sumitomo Corporation and Japan by saying “While many investors come to us and say they are interested in making investments in Indonesia, we try hard to identify who can be a good partner in a true sense. Partnership between Japan and Indonesia is truly important. And Sumitomo Corporation is a longtime friend of Indonesia and a great partner who has developed many power projects as well as other projects in the country with us. I look forward to your continued cooperation in the future.”


A view of TJB Unit 3 and Unit 4 began operating in October 2011 and January 2012, respectively


TJB is located in Jepara, the birthplace of Raden Ajeng Kartini, a pioneer in fighting for the rights of Indonesian women. Her statue is erected in the center of the town

  • 1
  • 2
  • 3
  • Next

REPORT 01 Expanding into New Markets―Mining Equipment Business: From Canada to the World

REPORT 02 Solutions through Innovation ―Power Plant Lease Project in Indonesia

  • Demonstrating the excellence of Japanese corporations―Relentless efforts to reduce power shortages in Indonesia
  • Perseverance wins the day―Building an unorthodox business model with a strong belief
  • Just keep moving ahead―Clearing a pile of components and regulatory barriers
  • “Never pursue easy gains”―Taking the high road of business and building strong relationships

REPORT 03 Introducing Japanese Agricultural Business Model Across the Globe ―Agribusiness to Spread Agricultural Cooperative Style Service from Romania

REPORT 04 Supporting Lifestyles ―Retail Business Incorporating Trends in Consumption Behavior

Return to Top