Significant Boost For Indo-China Relationship

A strategic partnership was forged between PT Biidznillah Tambang Nusantara (BTN), a special purpose vehicle of Pondok Pesantren Al Ishlah Bondowoso, Indonesia, BTN Power (M) Sdn.Bhd. and China Machinery Engineering Corporation (CMEC) from China on April 13th at The Sultan Hotel in Jakarta.

CMEC, a public listed state‐owned enterprise, is a large international integrated Company with technical and financial capability to undertake major engineering, Contracting works and supply of machinery and equipment in the oversea market. To-date, it has established its business foot-print in more than 150 countries and regions around the world.

The parties will participate in projects in the Oil & Gas sector comprising of an integrated crude oil refinery of 300,000 bpd, petroleum oil storage tank farm
Of 2 million metric tons capacity, a petrochemical complex and a 1 x 600 MW supercritical coal-fired power plant located on the 2,000 hectares of land in East Java.

Feasibility study for the crude oil refinery has been completed now by Maju Integrated Engineers Sdn. Bhd; and the Parties are at the final stage of concluding the equity shareholding for the refinery with CMEC and its affiliates providing the machinery and equipment and process technology for the refinery.

Financial projection for the said power plant of 1 x 600 MW will be finalized within the next month. The development cost of the integrated Oil & Gas project is estimated at US$10 billion.

An investment package has been worked out on the proposed Oil Palm Plantation Of 11,374 hectares in East Seram Island, Maluku to be provided by BTN (I) with CMEC supplying the required machinery and equipment for the extraction and refining of the palm oil and of which BTN Power (M) is close to securing a long‐tTerm export contract for the refined palm oil with a Middle Eastern corporation Upon financial closing.

In the mining sector, the Parties have since last year commenced discussions with AURECON Indonesia to provide the mine management service to BTN (I)’s existing coal mine concessions in Kalimantan with CMEC providing the mining machinery and equipment and BTN Power (M) supplying about 5.5 million metric tons of coal a year under a 30--‐Years Coal Supply Contract for the proposed 1x 600 MW supercritical coal-fired power plant in Pekan, Pahang State, Malaysia. BTN Power (M) is also a part-owner of the said power plant in Malaysia.

The Parties will also be looking into opportunities in other sectors in Indonesia as well with the primary interest in power plant sector.