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Energy Ministry: 35GW power plant program still on track

JAKARTA (RambuEnergy) – The Indonesian Energy and Mineral Resources Ministry have said the government’s ambitious 35 gigawatts (GW) power plant program is making good progress as reflected in the progress of the power plants development.

So far, around 4% of the power plants program has started commercial operation, 48% are under construction, 35% has signed power purchase agreement (PPA) but yet to start construction, 10% is still conducting procurements and the remaining 35 are still under preparation process.

Director General for Electricity Andy N. Sommeng said at the weekend that in total around 87% of the projects have already signed power purchase agreement and the remaining 13 projects have yet to sign power purchase deal.

Most of the projects that have entered commercial operation phase are gas power plants (PLTG), PLTM and solar power plants (PLTS). Those projects that are still under construction are comprising of PLTGU, coal-fired power plant (PLTU), geothermal power plant (PLTP) and hydropower plant (PLTA).

“The 35,000 MW program is still running on the right track,” said Andi Sommeng.

The Joko Widodo government originally planned the 35 GW power plant development program would be completed by the end of his current term. However, the Energy and Mineral Resources Ministry Ignasius Jonan has said only 20,000 MW of the power plants would be completed by 2019 and the remaining 15,000 MW would be completed in around 2024.

He said 20 GW should be enough as the country’s economy has been growing relatively slow at just over 5%, therefore there is no urgency to complete all the projects by 2019. (*)

Written by Staff Writer


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