New Inaugurated Arun Gas Power Plant to Revive Industries in Lhokseumawe

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 2 Juni 2016
Category: News
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President Jokowi,accompanied by Minister of State-Owned Enterprises Rini Soemarno, Managing Director of State-owned Electricity Company PT. PLN Sofyan Basyir, and Governor of Aceh Zaini Abdullah mark the inauguration of Arun Gas Engine Power Plant (PLTMG), on Thursday (2/6), in Lhokseumawe, Aceh

Today’s inauguration of 184 Mega Watt (MW) Arun Gas Engine Power Plant (PLTMG) in Lhokseumawe, Aceh, is expected to revive Special Economic Zone (KEK) and industrial zones in Lhokseumawe, President Joko ‘Jokowi’ Widodo said.

“The big industries such as Kertas Kraft Aceh, Iskandar Muda Fertilizer, Asean Aceh Fertilizer (AAF), and cement factories must be revived,” President Jokowi said in his remarks at the inauguration of Arun PLTMG located in Meuria Paloh Village, Lhokseumawe, Aceh, on Thursday (2/6).

On that occasion, the President also told Minister of State-Owned Enterprises and Governor of Aceh to find solutions to solve the obstacles on the ground, so that industries in Lhokseumawe can be revived, job opportunities can be created, and cash flow in Aceh can be intensified.

It is not easy to cut the chain of obstacles on the ground. For example gas in Lhokseumawe is supplied by Tangguh gas field, Papua, the President said.

“The distance is too far, but it is understandable as long as there is calculation for it, and beneficial for the economy,” the President explained.

President Jokowi added that when he visited any provinces or regencies, he always receives complaints from the people about blackouts that often hit their regions.

Building a power plant that uses coal takes 4 to 5 years to finish; thus, to meet the electricity needs of the people in regencies, cities, and provinces, the only way is by building a power plant that uses gas.

“I think the investors will not invest in Lhokseumawe if we did not construct the 184 MW capacity PLTMG. The investors will withdraw their proposals once they know there is no power plant here because industry and hotels need electricity. Even when they already agreed about the location, and supply of raw materials, they will withdraw when knowing there is no electricity in the region,” President Jokowi said.

“I appreciate PLN for swiftly respond to the regional deficiency in electricity and the acceleration in Arun and Bangka Belitung power plants’ construction that only took 3 months to finish, and it took 6 months to assemble the machines,” the President added.

The development of Arun PLTMG that only took 18 months to finish was carried out by PT. Wijaya Karya since mid-2014.

Besides talking about the power plant, President Jokowi also instructed Governor, Regent and Mayor of Aceh to accelerate the Trans Sumatra Toll Road project whose construction begun last year.

“We hope the construction will also start in Aceh and western Sumatra. Thus, the toll road will connect the western, central, and eastern parts of Sumatra,” the President added.

President Jokowi also instructed Governor of Aceh to start the construction of Trans Sumatra Toll Road this year.

The budget to fund the project is sourced from the Central Government budget; yet, the Governor, Regent, and Mayor of Aceh must resolve the land acquisition process.

“The Regional Government must complete the land acquisition process on their own by approaching the people, talk to them, and persuade them to sell their land because no matter how much the budget to fund the project is, it will be meaningless if it cannot be well-implemented on the ground,” President Jokowi explained.

First Lady Ibu Iriana, Minister of State-Owned Enterprises Rini Soemarno, Minister of Energy and Mineral Resources (ESDM) Sudirman Said, Presidential Chief of Staff Teten Masduki, and Managing Director of State-owned Electricity Company PT. PLN Sofyan Basyir also attended the inauguration. (DNK/FID/ES)(RAS/EP/YM/Naster)

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