Contract Awarded for a Submarine Power Cable Project in the Republic of Indonesia

January 31, 2020

Furukawa Electric Co., Ltd. (Head Office: 2-3, Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-8322, President: Keiichi Kobayashi), in a consortium with PT Wijaya Karya (Persero) Tbk (hereinafter “WIKA”), an Indonesian engineering and construction company, has been awarded a full turnkey engineering, procurement and construction contract for the Development of 150kV Submarine cable Sumatera- Bangka by PT. PLN (Persero), Indonesian’s state-owned electric utility. The contract value is equivalent to approximately 11 billion Japanese Yen and the delivery and commissioning of the Project are scheduled for 2021.

Background

Furukawa Electric has been contributing to the development of Indonesia’s submarine cable-based power grid. The extensive experience, quality and performance of Furukawa Electric in the past projects contributed to winning the award for this project. Having positioned the Asian submarine cable market as one of its targets, Furukawa will continue to strengthen its efforts to win contracts on the Asian market in order to secure future growth opportunities.

Details

The purpose of this project is to reduce the cost of electricity generation in the region and improve the stability of the electric power system. Specifically, the project will replace the diesel-electric system on Bangka Island with electricity supplied across the Bangka Strait from Sumatra Island in western Indonesia.

Furukawa Electric is responsible for supply of 108km x 150kV three-core cross-linked polyethylene (XLPE) Submarine power cables and all related cable accessories and installation of the cable accessories, while WIKA is in charge of civil engineering/construction and installation of the Submarine power cables.