Tuesday, 3 June 2014


The state electricity company, PT PLN (Persero), asserted that Natuna Regency and Anambas Islands, Riau Islands Province do not have a significant amount of local energy sources, so they are still relying on diesel. Natuna and Anambas are beautiful islands, so they are potential for international tourism activities. These two regencies, on the contrary, have great gas resources. Gas is flowed to Singapore, but is still hampered by the pipenization. “Currently, there are no pipelines to Anambas and Natuna island. Distance to gas wells is far enough, i.e. more than 100 kilometers. I cannot make sure, whether or not there should be a separate power supply in Natuna and Anambas islands”, PLN president director, Nur Pamudji, told Business News some time ago.

As a comparison, the island of Batam (Riau Island) and Tarakan (North Borneo) built their own power grid. Electricity rate is determined by the provincial/regental governments, respectively. “But I do not know about the ones for Natuna and Anambas.”

Minister of State-Owned Enterprises, Dahlan Iskan, recently visited Natuna and Anambas. The two island are located in the South China Sea. Natuna regency alone has at least 120 islands. Meanwhile, Anambas has 255 island. But the power gird is difficult to be built to meet the needs of the indigenous people of the islands.

On the other hand, PLN also confirmed the continuation of the development of steam power plant of IPP (Independent Power Producer) of South Sumatra 5. The plant is planned to be built in Mulut Tambang, South Sumatra. The installed capacity is 2 x 150 MW, the construction is planned to be completed in mid 2015. The contract period is 25 years, and the total cost reached USD484.91 million. “PLN is not involved in determining the margin. The results of the negotiations, the one who determines the price of coal (PT Mulut Tambang) is the Director General of Mineral and Coal. Mining proposals go to Director General of Mineral and Coal. He is the one who determines the price.”

The purchase of electricity depends on several components, namely A, B and C. Component C is determined by the Director General. Component A is associated with investment in equipment. Component B is associated with maintenance. The purchase price cannot be separated from the conditions of international prices, which can fluctuate. But as for the steam power plant PT Mulut Tambang, price comparison does not refer to the price of coal in international market. “We cannot compare the international price with the price of PT Mulut Tambang. Because in PT Mulut Tambang, the coal calorie is not limited. Coal calorie of PT Mulut Tambang is not limited, it could be three thousand, two thousand, six thousand, or five thousand. The coal of PLTU Mulut Tambang cannot be sold at international price.”

Even if there are plans to set it to six thousand, it is very unlikely. There are no means of transportation, so that operations are not optimal. For comparison, price of coal in the central part of Borneo could reach IDR 5,000. “If the operation is limited, coal cannot be transported, the price of coal is of no value. So, when PT Mulut Tambang was built, the coal has a value. But, the price cannot be compared to the international price. Part of the transmission (network) investment can be done jointly with steam power plant developers.” (E)  

Business New - May 21, 2014

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