Hydro Power in Indonesia - Photo: Privacy

JAKARTA (TheInsiderStories) – Indonesian government revised the construction of power plant project delayed from 15.2 giga-watts (GW) to 4.6 GW, said one official government on Monday (24/09). Previously Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan said that the government will delayed around 15 GW power plant projects in order to control imported components.

The majority of the postponed power projects are located in Java. The Director General of Electricity, Ministry of Energy and Mineral Resources, Andy M. Sommeng explained that the government will continue the electricity project of 10.56 GW until 2024.

He added, there are several reasons why the government decided to continue the electricity project. First, related to the power and gas sale purchase agreements. Sommeng said there were several agreements that had been signed by independent Purchase Producer (IPP) with state-owned power producer PT Perusahaan Listrik Negara (PLN) that had been agreed by the ministry.

Other reasons related to the selling price agreement, the project in the process to to find funding, reserve margin issues, and part of the project are related to renewable energy based.

“If this is canceled, the IPP must also swallow losses because it must still pay the agreed money. Furthermore it will not have an impact on the connection with CAD (current account deficit,” he said.

The minister Ignasius Jonan assured that the postponement of the power plant operation targets will be inline with the growth of electricity consumption in second quarter of 2018 for 4.7 percent. He said the reduction of half of 35,000 MW of the power project will reduce the imports for around to $10 billion.

Although the power projects are delayed, he assured that the delay will not disrupt the electrification ratio to 99 percent in 2019 considering that the electrification ratio today has reached 97 percent.

Written by Staff Editor, Email: theinsiderstories@gmail.com

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