Within Period of 5 Years, Government Will Build 42,000 MW Power Plant

Managing Director PT PLN Sofyan Bashir

The Administration of President Joko Widodo (Jokowi) and Vice President Jusuf Kalla (JK) affirming a commitment to build approximately 42,000 megawatts (MW), equivalent to 42 gigawatts of electricity generation infrastructure throughout the country, within the next 5 years (2015-2019) . This commitment edified in a limited meeting chaired by the President Jokowi, in the office of President, Jakarta, Tuesday (17/3) afternoon.

Managing Director (CEO) PT (Persero) State Electricity Company (PLN) Sofyan Bashir explains, from the figure of 42,000 MW which is implemented by PLN itself approximately 14,000 MW, and by the private sector of IPP amounted to 28,000 MW.

Regarding the investment the number of, the former Managing Director of Bank BRI mentioned investment needs for the next 5 years, amounting to Rp 608 trillion to PLN, and by private approximately Rp 580 trillion. The total investment of PLN infrastructure for the future is approximately around Rp 1,100 trillion.

“By December this year, hopefully we will be able to carry out a contract of approximately 10,000 MW, meaning, of course investment invested so immense,” Sofyan said.

Regarding the President’s message, according to Sofyan Bashir, the President reminded that the local content issues to be considered.

As for the dissemination, according to the Managing Director of PT. PLN, the total development of 35,000 MW plant, that started from Sumatra more or less nearly 9,000 MW; in Java 20,000 MW; Kalimantan nearly 2,000 MW; Sulawesi 2,700 MW; Nusa Tenggara 700 MW; Maluku 300 MW; and Papua 350 MW.

“So, the total is 35,529 MW for the whole of Indonesia,” Sofyan said.

Estimated completion of plants, for 2016, this newly built approximately in 2 years the development process about 2.2 gigawatts. In as much as 5.7 gigawatts in 2017, then in 2018 there were 8.6 gigawatts, and 19 gigawatts in 2019, so the total of approximately 35 gigawatts.

“The amount represents a new development in addition to the FTP I, being to be carried to completion in the end of this year more or less around 7,000 Megawatts. So the total is 42,000 MW,” Sofyan said.

According to Sofyan: power plants under construction in PLN 4,000 MW and 3,000 MW in IPP, whereas that has been committed 2,900 MW by PLN, and 4,000 MW by IPP.

Sofyan said that in the procurement process in PLN existing of 2,200 MW, and in IPP amounting of 11,000 MW, while in the planning in PLN 5,000 MW and 9,600 MW in IPP. “So overall total of planning for the next five years are 42,000 MW,” Sofyan said.

Limited cabinet meeting among others was attended by Coodinating Minister for Economic Affairs Sofyan Jalil, Minister of SOEs Rini Soemarno, Cabinet Secretary Andi Widjajanto and Head of BKPM Franky Sibarani. (Humas Setkab/ES)