Jakarta, July 31 (Antara) - The government through the newly reshuffled cabinet is expected to continue the 35,000 megawatt (MW) power plant project which will increase the nation's electricity capacity to 85,000 megawatts by 2019.
The Indonesian Independent Power Producers Association (APLSI) hopes that newly installed Energy and Mineral Resources (ESDM) Minister Archandra Tahar would work together with the state-owned electricity company PLN to reinforce the local power production.
APLSI executive chairman Arthur Simatupang said his association hoped the energy and mineral resources ministry and the PLN would open a new page and closed the old one to develop the mega power project on the fast track.
After all, ESDM Minister Archandra has been ordered by President Joko Widodo (Jokowi) to create energy resilience in the country in a short possible time.
"Energy sovereignty is related to how to meet the energy needs at a time of an energy crisis," the minister said, during an introductory meeting with journalist on Friday.
He noted that that the government will increase its supplies in the coming years in order to achieve energy sovereignty based on the Nawacita national development priority program.
Minister Candra himself has confirmed he will proceed with the 35,000 MW electricity project. "We will seek solutions to constraints hampering the 35,000 MW power development," Candra, as Archandra Tahar is popularly called, said.
Therefore, to make the 35,000 MW power project a success, PPLSI Secretary General Priamanaya Djan concurred with Arthur Simatupang that the ESDM and the PLN should share the same view on the strategic role played by the national independent power producers in accelerating the development of the 35,000 MW power project.
The program needs a big investment and a huge amount of funds amounting to Rp1,189 trillion. It is impossible for the PLN to bear this amount of funds when it comes to the financial matter.
After all, the PLN has been assigned to build power generators, electricity networks and distributors in isolated regions. President Jokowi has therefore provided directives that in the development of infrastructure facilities, the private sectors are expected to build feasible projects based on the business perspective.
In addition, the state budget will face high risks if allocated in building infrastructure in the regions.
President Jokowi has previously made an evaluation on the implementation of the 35,000 MW power plants as he saw that the execution of the project had not gained significant progress, according to Priamanaya.
The head of state asked related institutions to conduct evaluations from the tender process, financing and the management plan of the PLN.
Priamanaya said it is better for the government to not widely open the door of national electricity projects to overseas investors. They can invest but they should partner with local companies so that national energy resilience and sovereignty could be maintained.
For this, the role of local companies should be strengthened in the power development program as it concerns national resilience and the lives of many people.
However, the APLSI is of the view that the new ESDM minister would work professionally as he has a good track record.
Arthur Simatupang said Candra has a good track record from the professional circles. He has experience over 20 years in upstream oil and gas industry in the United States.
Candra's concept on energy resilience has close relations with local producers in producing national energy needs so that the national energy independence could be created.
"The minister's concept on energy independence is very good, meaning that he places national producers in the central point," Arthur said.
Earlier, the APLSI expressed hope that the funds repatriated from the government's tax amnesty program would be used to develop electricity generating plants to support the 35,000 MW power projects and overcome power crisis in various regions.
"We would propose that the government should activate the public private partnership (PPP) program to finance the development of the 35,000 MW project," said Arthur Simatupang.
The cooperation scheme will be very solid if the PPP program is incorporated with the 35,000 MW power project and is financed by banks which accommodate the repatriated funds from the tax amnesty program.
According to Arthur, if this scheme is implemented, it will increase certainties and clarity of the rule in creating a conducive climate for investment in infrastructure. It could also minimize risks, increase certainties for the future of investment.
The PPP scheme had been introduced since 2005 but its nomenclature has been changed into Government-to-Business Cooperation (KPBU) scheme.***3***
(A014/f001 )(T.A014/A/A. Abdussalam/F. Assegaf) 31-07-2016 16:23: |
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