Tuesday, 3 July 2012


Power system in Aceh, especially in the northern part of Aceh, will soon get an additional 22 Megawat (MW) power supply. This additional supply will be obtained by the State Electricity Company will be obtained by the State Electricity Company (PLN) from the Steam-Fired Power Plant (PLTU) owned by PT Kertas Kraft Aceh (Persero), a state owned company whose line of business is in the production of kraft paper located in North Aceh. This is as set forth in MoU on Lease Operation of Power Generator for Lhokseumawe area, Aceh, signed by the President Director of PT PLN (Persero), Nur Pamudji, and the President Director of PT KKA (Persero), Abdul Aziz Pazsa.

The signing of the MoU was witnessed by President Director of PT Perusahaan Pengelola Aset (Persero) Boyke Mukiyat. This is the starting point of the partnership between two state-owned enterprises, namely PT KKA (Persero) and PT PLN (Perseron) on the operation of power plant owned by PT KKA. The PLTU will be operated under state-owned enterprise synergy scheme based on good corporate governance.

PLTU owned by PT KKA will be operated by using Steam Turbine Generator manufactured by General Electric Energy (GEE) with a capacity of 2 x 18 MW. But, since December 2007, the power plant was no longer operated as PT KKA (Persero) has stopped production. On the other hand, PT PLN needed an additional power supply for Aceh region. Therefore, PT PLN and PT KKA agreed to enter into partnership on utilization of idle power plant owned by PT KKA.

“PLN expects that the MoU will soon be realized by concrete action, including process of completion of modification of turbine which is expected to compete by September 2012 so that the power plant will be more efficient and will be ready for operation by the end of 2012, and a Power Purchase Agreement (PPA) will also be signed”, President Director of PLN, Nur Pamudji, told Business News.

President Director of PT Perusahaan Pengelola Aset (Persero), Boyke Mukiyat, explained that the partnership is a form of PLN’s participation in improving PT KKA. “We expect that the partnership will provide an added value for both state-owned enterprises based on synergicity among state-owned enterprises based on synergicity among state-owned enterprises”, Boyke Mukiyat told Business News.

PLN in its 10-year partnership plan with PT KKA and with the support from the Ministry of State Enterprises will perform a study jointly with PT Pertamina, Oil & Gas Regulator (BP Migas), and the Ministry of Energy and Mineral Resources to acquire a long-term gas supply in accordance with requirement for operation of the power plant owned by PT KKA.

Meanwhile, industries in East Java will soon enjoy natural gas in accordance with contract. State Gas Company (PGN)’s Strategic Business Unit (SBU) II has successfully increased addition of supply. This will be done gradually from June 2012. Since the application and commitment on the adjustment of gas price in mid 2011, business climate of the upstream sector is increasingly growing and is more productive. The positive impact is that commitment on addition of supply for the region concerned can be more guaranteed.

In June 2012, maximum customers contract is at around 150 MMscfd. Consumption will continue to increase until the end of 2013 up to around 180 MMscfd. Industry customers are now preparing the equipment and the human resources for absorption of new supply. In November 2012 – July 2013, total customers will increase capacity of gas consumption for production increase.

SBU II is currently serving more than 12,000 customers, and 350 of them are commercial industry customers. Parallel with fulfillment of contract on gas requirement for the region concerned, target of industry and commercial industry customers is set to grow by more than 15% to 414 customers.

PGN also expects that the positive impact and a similar thing could be enjoyed by customers in West Java. So far there has been an objection from several industries concerned adjustment of gas price in the region concerned. Addition of supply for industry sustainability and requirement is the expectation of all parties, whether PGN or customers as end users.  

Business News - June 20, 2012



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