Japan’s Furukawa Electric to join Indonesia’s submarine cable project

03, Feb. 2020


JAKARTA, NNA - Japan’s Furukawa Electric Co. has won a full turnkey contract from Indonesia’s state-owned utility together with its local partner to engineer and construct a submarine cable for reducing power generation cost and improving a stable supply of electricity on Bangka Island adjacent to Sumatra Island.

The Japanese electric components supplier said Friday that the contract valued at about 11 billion yen ($101 million) would allow Furukawa Electric and PT Wijaya Karya, or Wika, a state-backed engineering and construction firm, to develop 150-kilovolt cable between the two islands for PT PLN.

Furukawa and its Indonesian partner take about half of the contract value each, a spokeswoman at Furukawa Electric told NNA on Monday.

The project, scheduled to be completed in 2021, aims to replace diesel power system on Bangka Island with electricity to be supplied across the Bangka Strait from Sumatra Island in western Indonesia, Furukawa Electric said in a statement.

The task will reduce power generation costs and improve the stability of the electric supply in the region, it added.

Furukawa is responsible for the supply of 108-kilometer, 150-kilovolt, three-core cross-linked polyethylene submarine power cables and related cable accessories, while Wika is in charge of civil engineering, construction and installation of the cables.

Furukawa Electric has identified the submarine cable business in Asia as its strategic business. The company has worked on several similar projects in China, the Philippines and Malaysia, the spokeswoman added.