Indonesia' government said the development process of the Batang steam power plant in Central Java has reached 83 percent now and is ready to operate by early 2020 - Photo: Privacy

JAKARTA (TheInsiderStories) – Indonesia’ government said the development process of the Batang steam power plant in Central Java has reached 83 percent now and is ready to operate by early 2020, the official told reporters today (09/26). The progress includes engineering, procurement and construction activities.

“The Batang steam power plant has reached 83 percent and the process is still speeding up. But it is certain to be ready to start operating in early 2020,” said the secretary of the director-general of electricity at the energy ministry Munir Ahmad in Jakarta after a working meeting with the coordinating ministry for the economy.

It said the plant project which has a power of 2,000 megawatts has an investment of US$ 4.2 billion. The construction operator consists of PT Bhimasena Power Indonesia (BPI), a joint venture founded by three companies, namely the world’s largest coal Indonesia-based company, PT Adaro Energy Tbk (IDX: ADRO), and Japan Electric Power Development Co. Ltd. (J-Power), and Itochu Corporation (Itochu).

Besides Batang power plant, Adaro also has a Tanjung plant project in South Kalimantan. Currently, the project has entered the commissioning phase because it is almost complete. The plant is expected to be operational by the end of this year.

The plant has a capacity of 200 megawatts with a total investment of $545 million, carried out by PT Tanjung Power Indonesia which is a consortium company of Adaro and a South Korean company, PT East-West Power Indonesia.

Months ago, Indonesian power producer, PT Perusahaan Listrik Negara (PLN) estimated that this year several power plant projects under the 35 thousand megawatts program will begin commercial operations. It estimate there will be around 3,800 megawatts both from PLN and independent electricity producers that will be operational.

“There are several power plants in operation in 2023 and 2024. The biggest one in 2019 will be the entry of 1,000 megawatts sizing. We estimate this year there will be an additional 3,800 megawatts,” PLN director of corporate planning Syofvi Roekman told reporters in his office.

In addition, other power plants which are new renewable energy will also speed up the process, so that they are targeted to operate this year with a total power of 570 megawatts. The government has determined to reduce its use of conventional fossil fuels and continues to promote new and renewable sources of energy and increase the share of renewables in its energy mix to 23 percent by 2025.

Meanwhile, in 2020, it said that it will be a year in which large-capacity projects which are part of the 35 thousand megawatts project will be operational. It targeting next year, there will be an additional 10 thousand megawatts of power plant projects that can operate.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com