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Indika cancels Cirebon power plant project

Financial difficulties are forcing publicly listed energy company Indika Energy to withdraw from a mega power plant project that was initially estimated to cost about US$1.4 billion.

Indika vice president for corporate finance and investor relations Retina Rosabai said in Jakarta on Wednesday that with the company’s current financial condition, it would be difficult to continue the project, which was to have been located in Cirebon, West Java.

“We have decided that it might not be the right time for us to participate in the project and we have decided to divert our portion in the consortium to Indika Mitra Energi [IME], our parent company,” Retina said.