Tuesday, 17 April 2012


            The Minister of Energy and Mineral Resources Jerro Wacik, in a technical meeting with Commission-7 stated that to reduce dependency on oil fuel and in the effort of energy diversification, PLN was asked to strive to realize development of non-oil generators including Water Powered Generators (PLTA) outside Java by using abundant water force potentials The Minister also stated that the Government supported the idea of, and expected participation of the private sector (IPP) in the development of new generators. In this connection the State Electric Company (PLN) had received proposals from some project initiators for three water-powered generators (PLTA) in Batang Toru (North Sumatra), Kerinci (Jambi) and Karama (West Sulawesi).

            The three PLTA projects were part of PLN long term plan as included in Electricity Procurement Plan (RUPTL) 2011 – 2020. The PLTA project was projected to be ready by 2018. “PLN have decided that the three PLTA would not be built by PLN itself, but it would be entrusted to private developers through the Public Private Participation Scheme (PPP)” President Director of PLN Nur Pamuji was quoted as saying. Accordingly PLN Nur Pamuji was proposing to the National Planning Board BAPPENAS for further execution of PPP projects.

               Considering the vast amount of investment and the possibility that this PLTA project would be financed by foreign investors, PLN would also propose protection by project insurance through PT Indonesia Infra Structure Insurance (PII). Government guarantee meant assurance of certainty of projects to investors and guarantee smoothness of project execution.

            Nur Parmuji said PLN welcomed any wish of any private company to invest in electricity business. Participation of the private sector was needed to step up capacity of electricity supply to keep up with growing power consumption. Previously PLN had signed power purchase agreement (PPA) or transaction agreement with some PLTA namely PLTA Asahan 1 eith the capacity of 2 x 90 MW in North Sumatra which was now in operation, PLTA Poso 3 x 65 MW in Central Sulawesi which was to operate soon in July 2012 and PLTA Wampu 3 x 15 MW in North Sumatra. 

Business News - March 28, 2012

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