The Asian Development Bank (ADB) has approved a US$600 million loan to help the state-run power producer PT Perusahaan Listrik Negara, to expand electricity access and promote renewable energy in eastern Indonesia - Photo: Special

JAKARTA (TheInsiderStories) – Indonesian power producer, PT Perusahaan Listrik Negara (PLN) targeting to operate six power plants in this year. The plants will have a capacity 4,000 megawatts (MW), said the chief executive last week.

The CEO Sofyan Basir said, with the operation of the six power plants, is estimating PLN will have a capacity 66,565 MW. He added, “This is to answer the needs of electricity consumption growth, especially in the industrial sector.”

Meanwhile, Director of Strategic Procurement Iwan Supangkat stated, 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 commercial operation date is not concurrent, but will be pursued throughout 2019. On average, the update has reached 80-90 percent,” he said.

Supangkat predicted, the growth of industrial electricity needs in 2019 will increase without give further explanation on the figures. With the addition of six new power plants, he added, it 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 director general for Electricity Andy N. Sommeng revealed 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 1.064 kilowatt per hour (kWh) per capita was still far away, Malaysia was 4.000 kWh per capita, Singapore was 8.000 kWh per capita. But Jakarta was 3.500 kWh per capita,” said Sommengr.

PLN plans to provide Rp90 trillion (US$6.38 billion) investment in 2019, mostly for the 35 gigawatt (GW) project. 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.

Last year, PLN has issued global bonds worth $1.5 billion. The global bond is issued in two currencies at once, namely the American dollar and the Euro.

So far, the construction of the power plant is included in the mega project part of the 35 GW launched by the current president. In addition to large plants, PLN also continues to develop small power plants such as from new and renewable energy, solar panels and diesel for remote and isolated areas throughout Indonesia.

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: Rp14,100

Written by Daniel Deha, Email: