Energy and mineral resources minister, Arifin Tasrif, innaugurated 10 power plants with total investment Rp15 trillion (US$1.05 billion) last week - Photo by the Ministry Office

JAKARTA (TheInsiderStories) – Last week, energy and mineral resources (EMR) minister, Arifin Tasrif, inaugurated 10 power plants with total investment Rp15 trillion (US$1.05 billion). The projects have a combined capacity of 555 Megawatts (MW), comprising of seven gas power plants, one geothermal power plant, one steam gas power plant, and one mini-hydro power plant.

The power plant is part of the 35,000 MW program. In addition to the industrial estate, the ministry also prioritizes the availability of electricity in special economic zones, tourism, fisheries centers and others.

The ten projects that were inaugurated were Muara Laboh (80 MW), Muara Karang (300 MW), Langgur (20 MW), Seram (20 MW), Ambon Peaker (30 MW), Biak  (15 MW), Biak 2 (10 MW), Jayapura Peaker (40 MW), Merauke (20 MW), and Merauke (20 MW).

“In addition to the power plant projects, there are five transmission networks and four substation projects in the regions of Sumatra, Kalimantan, Sulawesi, Maluku, Papua and Nusa Tenggara,” adds by the CEO of state-owned utility producer, PT Perusahaan Listrik Negara (PLN) Zulkifli Zaini.

There are also 55 existing transmission networks and 60 substations in Java, Madura, and Bali, which increasingly reliable with the operation of the Muara Karang. He explained that in the midst of the pandemic, PLN is trying to complete the 35,000 MW project and the construction of a transmission network with the implementation of strict health protocols.

To date, around 23,000 MW of the mega projects have entered the construction stage. The state-owned company is currently intensifying the construction of a new transmission network in the Java – Bali interconnection area to anticipate mass power outages throughout the region.

So far, PLN had obtained funding through the issuance of global bonds worth of $1.5 billion. The global bond consisted of three tranche, which were $500 million with a 10 years and three months tenor, $500million with a 30 years and three months tenor, and $500 million with a 12 years tenor, and coupon rates of 3.37 percent, 4.37 percent and 1.87 percent, respectively.

The funds were expected to increase the electrification ratio to 100 percent by 2020. Additional funds were also expected to be able to accelerate the development of frontier, outermost, and disadvantaged regions.

US$1: Rp14,300

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