JAKARTA (TheInsiderStories) – Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan said that the government will delayed over than 15,000 megawatts’ (MW) power plant projects in order to control imported components. The majority of the postponed power projects are located in Java.
He told reporters at the parliament on Wednesday (05/09), this measure was taken given that the supplies of electricity in Java has been sufficient enough.
The other reasons, many of the power companies not comply with the regulation on local content obligation. Even more, he added, domestic industry has ability to produce electricity components.
“Many companies did not obey the regulation on imported components. For example, it should be 40 percent, they only used 20 percent of local content. There are many components that can be produced domestically, but they still imported,” said the minister.
Currently, he explained, the government is still evaluating the list of banned for the imported components. From the 1.150 lists, Panjaitan said, there are lot of the components that can be bought domestically.
“It small components but if we calculate them, the amount could reached
US$20 billions,” said Panjaitan.
According to the Energy and Mineral Resource Minister Ignasius Jonan there are around 15.200 MW of power projects will be delayed. He said that the postponement of the targets of the power plant operation will be inline with the growth of electricity consumption in second quarter of 2018 for 4.7 percent.
Jonan 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.
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