Gov’t Inaugurates National Strategic Electricity Projects
Date 16 Juli 2020
Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif, accompanied by President Director of state-owned electricity PT PLN Zulkifli Zaini virtually inaugurated the National Electricity Projects including improving access and reliability of electricity supply in order to attain the target of 100% electrification ratio.
The Electricity Projects inaugurated consist of the PLN’s Substation, Transmission and Power Plant Project as well as electricity supply commitments for the smelter industry, the Sinar Mas Group Electrical CSR Program, and the New Electricity Installment Program (BPBL) of 450VA.
“Ministry of Energy and Mineral Resources continues to be committed to providing adequate and equitable energy supplies even though we are currently in the period of adapting to new habits due to the Covid-19 virus pandemic. In addition, it also encourages business entities to continue to provide sufficient electricity supply through the construction of electricity infrastructure, so that the activities of the people who work, study, and worship from home are not interrupted,” the Minister said at the virtual inauguration, Jakarta, Thursday (16/7).
The inaugurated infrastructure projects include power plants, transmission lines, and substations. “Today we will witness together the inauguration of 10 power plants with a total capacity of 555 Mega Watt (MW), 5 transmission network projects reaching nearly 280,000 kms and 4 substation projects spread throughout Indonesia reaching 330 MVA. The total electricity infrastructure investment, especially for 10 power plants reaches Rp15 Trillion and can absorb 4,038 workers,” Arifin said.
The ten power plant projects inaugurated are: Muara Laboh Geothermal Power Plant (80 MW); Muara Karang Gas and Steam Power Plant (300 MW); Langgur Gas Engine Power Plant (20 MW); Seram Gas Engine Power Plant (20 MW); Ambon Peaker Power Plant (30 MW); Biak Gas Engine Power Plant (15 MW); Biak 2- NCB PT Indonesia Power Gas Engine Power Plant (10 MW); Jayapura Peaker Gas Engine Power Plant (40 MW); Merauke Gas Engine Power Plant (20 MW); Merauke 2 – NCB 9 PT Indonesia Power Gas Engine Power Plant (20 MW).
“The availability of sufficient electrical energy to remote areas is expected to support industrial growth, both large and small industries in the regions. In addition to the industrial estate, the Ministry also prioritizes the availability of electricity in special economic zones, tourism areas, fisheries centers, and others. Basically, the benefits of energy must be felt throughout Indonesia,” the Minister stated.
Similarly, the PLN President Director also revealed that a number of projects inaugurated today were part of the 35,000 MW project. PLN continues to be committed to being able to fulfill the basic rights of the community, namely getting access to electricity. In the midst of the Covid-19 pandemic, PLN continues to complete the 35,000 MW power plant project and the construction of a transmission network with the implementation of strict health protocols.
“Today we will also witness the signing of power purchase agreements (SPJBTL) between PLN and 6 mineral processing industry companies and the signing of 7 MoUs with a total electricity demand of 1,120 MW. The signing of the power purchase transaction is a form of mutual cooperation between PLN and the smelter industry. The signing of the sale and purchase is also a form of PLN’s support for industrial growth in Indonesia while increasing Indonesia’s electricity consumption per capita,” the Minister stated.
The 6 companies that have signed SPJBTL with PLN are PT Sebuku Iron Lateritic Ores in South Kalimantan Province (30 MVA); PT Parenggean Makmur Sejahtera in Central Kalimantan Province (40 MVA); PT Ceria Nugraha Indotama in Southeast Sulawesi Province (412 MVA); PT Bintang Smelter Indonesia in Southeast Sulawesi Province (100 MVA); PT Huadi Nickel Alloy in South Sulawesi Province (190 MVA); and PT Kapuas Prima Citra in Central Kalimantan Province (2.5 MVA), totaling 722 MW. The Ministry also encouraged and facilitated smelter companies to obtain funding support from banks, which is the case for PT Ceria Nugraha Indotama.
In addition, PLN has also signed an MoU with 7 smelter companies, namely PT Aneka Mine, PT Ang And Fang Brother, PT Mahkota Konaweeha, PT Dinamika Sejahtera Mandiri, PT Kalbar Bumi Perkasa, PT Gulf Mangan Group, and PT Kobar Lamandau Mineral. The total electricity demand is estimated to reach 395 MW.
In addition to providing electricity in industrial areas, the provision of electricity in all corners of the country as measured by the increasing electrification ratio is also of importance. Until April 2020, the national electrification ratio reached 98.93%. The Government targets the electrification ratio to reach 99.9% by the end of 2020.
“The participation of all parties in the supply of electricity to the people who need it is greatly appreciated. We appreciate the participation of the Sinar Mas Group, which has provided budget allocations for electricity CSR. Through the activities of several business entities under the Sinar Mas Group, the community has access to electricity through the Solar Home Lighting Assistance Programs (LRTS) program, the expansion of the electricity network, and Sinar Mas Group’s participation in the BPBL program. A total of 21,926 households can now enjoy electricity from the Sinar Mas Group’s electricity CSR program. Once again on behalf of the Government, we greatly appreciate these efforts,” the Minister added.
On the occasion, the Ministry also inaugurated the BPBL program to help free new electricity installments for poor households without electricity. BPBL is an assistance program initiated by the Ministry and 28 business entities in the energy and mineral resources sector.
“Today I will also inaugurate the installment of new electricity connections to 57,573 households from the BPBL program, where the funding comes from the Ministry of Energy and Mineral Resources Cares program, the assistance of 28 Business Entities in the energy and mineral resources sector, and PLN’s CSR. Through this program, people who previously did not get access to electricity or get electricity by hitching from the neighbors can now get the electricity independently. This program will continue to realize the electrification ratio of 100%,” Arifin stated.
The Government, he said, greatly appreciated all participation in providing access to electricity for these disadvantaged people, especially to PLN and the 28 companies.
“Finally, we leave these strategic electricity projects, smelter projects, Sinar Mas Group’s electricity CSR and free electricity connections through the BPBL program to the local government. We hope that this strategic object’s security and reliability can be maintained so that it can continue to provide great benefits to the community,” he concluded. (Ministry of Energy and Mineral Resources/EN)
Translated by: Fairuzzamani Inayatillah
Reviewed by: Yuyu Mulyani