Indonesian builts Mentarang Hydroelectric Power Plant amount US $ 2 billion (Rp. 28 trillion) in North Kalimantan in 2020 said Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan. Photo by: Special.

JAKARTA (TheInsiderStories) – Indonesian aimed to built Mentarang Hydroelectric Power Plant, in North Kalimantan, with total costs US$2 billion starting 2020, said Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan. The decision has been take in a coordination meeting with state-owned power producer, PT Perusahaan Listrik Negara (PLN) and Energy and Mineral Resources (EMR) ministry on Friday (07/26).

He expect that the project preparation must be completed this year. He added that Hydroelectric Power Plant project involved Malaysian company Sarawak Energy and State-owned mining holding, PT Indonesia Asahan Aluminium.

“The capacity of the hydroelectric power plant will built is 1,350 megawatts (MW),” he said in his office on Friday (7/26)

In addition, director of strategic procurement at PLN, Sripeni Inten Cahyani, explained that the Commercial Operation Date of the plant will be processed six years from now.

“This Hydropower Project will be used to contribute to the electricity supply of the Tanah Kuning International Industrial and Port Area, Bulungan Regency, and to increase national energy security,” she said.

Construction of a hydroelectric power plant is a government program for national energy security. Until now the government continues to be committed to finding energy sources so that it can reach the public.

This year, Perusahaan Listrik Negara targeting to operate six power plants. The plants will have a capacity 4,000 MW, said the acting chief executive last week.

With the operation of the six power plants, is estimating the power producer will have a capacity 66,565 MW. The six power plants to be operated consisted of four steam power plants and two hydroelectric power plants.

The first power plant is Java 7 and Cilacap power plant which has a capacity of around 1,000 MW, each. Then, Lontar power plant with total capacity 315 MW and coal-fired power plant Gati with 450 MW capacity.

The two hydro-power plants are located in Jatigede, West Java, with a capacity of 2×55 MW and Rajamandala power plant in Cimahi, West Java with a capacity of 47 MW. However, he said, the six power plants would not operate at the same time because it were still consolidating with the Ministry of Energy and Mineral Resources (MEMR).

The growth of industrial electricity needs in 2019 will increases. With the addition of six new power plants, its expected can be determined the fulfillment of electricity needs of the society and industry.

This is similar with the target of the MEMR, which plans to add the installed capacity of the power plant in 2019 amounting to 3,976 MW, where the realization of installed capacity in 2018 is 62,589.71 MW.

The government would indeed increase the national average electricity consumption by 1,200 kilowatt per hour (kWh) per capita, up from the realization in 2018 which amounted to 1,064 kWh per capita. This figure is relatively small compared to neighboring countries like Malaysia and Singapore.

Last year, the realization 1.064 kWh per capita and was still far away from Malaysia 4.000 kWh per capita and Singapore 8,000 kWh per capita.

PLN plans to provide Rp90 trillion (US$6.42 billion) investment in 2019, mostly for the 35 Gigawatt projects. The funds would later be obtained by the power producer from the company’ equity and third party funding. PLN also opened the option to re-issue bonds and local bonds to be able to meet this investment need.

Indonesian President Joko Widodo himself admitted that there were around 1.2 million homes that did not have access to electricity in all of Indonesia. Expected, by this six plants operation, people will enjoy electricity as a whole slowly.

US$1=Rp14.000

Written By Willy Matrona Email@TheInsiderStories.com