The company intends to gain from the government’s strategy to increase its electricity capacity by 35,000MW over the next five years in order to meet the increasing energy demand, The Jakarta Post reported.

Of the planned 35,000MW, around 10,000MW will be developed by teh state-owned electricity firm PLN and the remainder by private firms.

Indonesia Energy and Mineral Resources Ministry has issued a regulation, under which PLN can directly purchase electricity produced by other firms without seeking approval from the energy and mineral resources minister.

PTBA corporate secretary Joko Pramono said: "The issuance of the Energy and Mineral Resources Ministerial Regulation which allows direct purchase of electricity produced from mine-mouth plants will ease the process."

The electricity generated at the plants will be directly transmitted through a transmission line.

PLN, which manages transmission lines in the country, is planning to allow private developers lay transmission lines. These will be taken over by PLN after the completion of construction.

PTBA has developed several mine-mouth power plants in the country. It is now working to connect its 2x110MW Banjarsari mine-mouth plant to PLN’s transmission station.