GOVT NEEDS TO BUILD ADEQUATE ENERGY TO IGNITE ECONOMIC GROWTH

by Andi Abdussalam

Jakarta, Oct 26 (Antara) - With an inflation rate of below four percent, Indonesia is demonstrating a sound economic development trend wherein its growth rate is expected to reach some five percent in 2018 and 2019.         However, the positive trend should be supported by other sectors, such as energy, so that economic development could be maintained on the right track.         Hence, Montty Girianna, a deputy for energy management of the Coordinating Ministry of Economic Affairs, reminded that Indonesia needed to increase its energy productivity to support the country's economic performance.         "Indonesia needs to continue to strive to increase productivity, including in the energy sector. The government should ensure its availability and the affordability of its consumers," Girianna stated in Jakarta on Tuesday (Oct 23).         In this case, the government continues to offer business investment opportunities to companies, so that it can increase the potentials of the country's depleting energy resources. To this end, one of the steps that the government can take is to provide more convenient business facilities and investment attractiveness in the energy sector.

GOVERNMENT STILL NEEDS TO PROMOTE 3,829-MW POWER PROJECTS

by Andi Abdussalam

Jakarta, March 6 (Antara) - The government still needs to further promote its electricity programs to realize its 35 thousand megawatt (MW) power development target.          So far, of the 35 thousand megawatt target, only some 31,171 MW have been covered in work contracts, either of state-owned electricity firm PLN or private companies. Of the 31,171-MW, some 1,362-MW had been operational, 17,116-MW are in the construction phase and 12,693-MW are still in the construction plan.          Thus, to meet the 35 thousand megawatts, the government still runs short of 3,829-MW, it still has to promote to the private sector.          The Ministry of Energy and Mineral Resources (ESDM) has reported the progress of the government's 35-thousand megawatt electricity development it has done until February 2018.          Until February this year, based on data monitored by Antara in Jakarta on the official website of the Ministry of Energy and Mineral Resources, power plants under this program that have been operational have reached a capacity 1,362-MW while plants which are still in the construction phase have a total capacity of 17,116 MW.

INCLUSION OF COAL PRICE IN POWER TARIFF FORMULA RISKY

By Andi Abdussalam

Jakarta, Feb 17 (Antara) - The government is formulating a new electricity tariff scheme by including the coal reference price (HBA) as one of the elements in the calculation of the basic electricity rate.          The inclusion of the HBA in the new electricity tariff scheme is based on the consideration that some 60 percent of the nation's electricity will still be supplied by coal-fired power plants until 2026.          In its automatic three-monthly electricity tariff adjustment, the government has included three elements of Indonesian Crude Price (ICP), rupiah exchange rate, and inflation in its electricity tariff formula. With the new scheme, the government will reformulate the elements by including the HBA.          However, the inclusion of the HBA elements in the basic electricity tariff structure is considered to be risky and disadvantageous for the state-owned electricity firm PLN.          According to Indonesian Consumers Foundation (YLKI) Chairman Tulus Abadi, the discourse on the reformulation of the electricity tariff by including the price of coal as one of the reference elements is basically very risky if it still refers to the international price.

GOVERNMENT ACCELERATES ELECTRIFICATION PROGRAM IN N MALUKU

by Andi Abdussalam

Jakarta, Dec 27 (Antara) - The government, through state-owned power utility company PLN, is accelerating its electrification program in North Maluku, particularly in the islands of Halmahera and Morotai, in its efforts to provide equal power supplies to one of the eastern regions of Indonesia.          Until the end of this year, PLN has completed its electricity supply projects for 11 villages as a Christmas and New Year's gift for the residents of Hamahera and Morotai Islands.          Besides the six service units of the Sofifi Area, PLN area has upgraded its operations from 12 hours to 24 hours. This means that from next year on, PLN will operate and supply electricity for 24 hours in the islands of Halmahera and Morotai.          Besides supplying 11 villages with electricity by the end of this year, PLN will also accelerate its program to cover 48 other villages in the islands of Halmahera and Morotai next year.         "By the end of 2017, PLN has provided gifts for Halmahera and Morotai, with the supply of electricity for 11 villages," General Manager of PLN for Maluku and North Maluku, Djoko Dwijatno, noted in a press statement in Jakarta on Monday.

INDONESIA POISED TO BECOME WORLD'S LARGEST GEOTHERMAL POWER PRODUCER

by Andi Abdussalam

Jakarta, Oct 25 (Antara) - The Ministry of Energy and Mineral Resources (ESDM) has estimated that Indonesia will become the world's largest geothermal power producer by 2021.          In the next four years, the capacity of Indonesia's geothermal power plants (PLTPs) will surpass that of the world's largest geothermal power producer, the US.          Geothermal Director of the Directorate General of Renewable Energy and Energy Conservation of the ESDM Ministry Yunus Saefulhak said in 2021, the installed capacity of Indonesia's PLTPs is forecast to reach over 3,550 megawatts (MW).          "In 2021, we are optimistic of becoming number one," he noted in Jakarta, Tuesday (Oct 17).          Indonesia is currently ranked third, in terms of utilization of geothermal energy, behind the Philippines. Currently, the US' PLTP capacity is estimated to remain stagnant at 3,450 MW. Meanwhile, the Philippines' PLTP capacity is forecast to decrease from the current installed capacity of some 1,870 MW.          For 2017, Indonesia's installed capacity target is set at 1,858.5 MW, and the geothermal road map has also been prepared. Saefulhak is optimistic that the target would be met.

GOVERNMENT ACCELERATES RURAL ELECTRIFICATION

By Andi Abdussalam

Jakarta, Sept 20 (Antara) - The state-owned power utility company, PLN, is cooperating with local governments in its attempt to accelerate and achieve its rural electrification program target in 2.5 thousand villages this year.         "There are more than 10 districts whose local governments are cooperating with PLN to make the rural electrification program a success," PLN's director for Maluku and Papua provinces, Ahmad Rofiq, said in Jakarta on Tuesday (Sept 19).           The Indonesian government is currently launching its electrification program called "Indonesia Terang" (Indonesia Bright), with a target to provide electricity for 10.3 thousand villages until 2019, or about 97.35 percent of the country's electrification ratio.           Rofiq stated that the cooperation held with the local governments to accelerate the rural electrification program is aimed to meet the need for power supplies of PLN's 450 watt subscribers, with a capacity of 300 kWh, especially in the Indonesian eastern regions.           The government, in its "Indonesia Terang" program, gives an emphasis on villages in the Indonesian eastern regions. Until last year, some 67 percent of the Indonesian rural electrification program covered the Indonesian eastern regions that stretch from West Nusa Tenggara Province (NTB) to Papua.

GOVERNMENT CONTINUES TO DEVELOP RENEWABLE ENERGY-BASED POWER PLANTS

By Andi Abdussalam

Jakarta, Aug 9 (Antara) - The government continues to build power plants in a bid to provide adequate electricity to consumers while avoiding the use of conventional or fossil-based resources that are depleting.          Hence, the government is making efforts to use new and renewable forms of energy to generate electricity since their use will help the country achieve its greenhouse gas emission reduction and energy mix targets.          To this end, the Energy and Mineral Resources (ESDM) Ministry has called on partner companies to develop new and renewable energy-based power plants. According to ESDM Minister Ignasius Jonan, a total of 53 Independent Power Producers (IPPs) have agreed to develop new and renewable energy-based power plants.          The ESDM Ministry has planned to develop 64 new and renewable energy-based power plants, with a total capacity of 400 megawatts (MW).          The new and renewable energy-based power plants will be built in the islands of Sumatra, Java, Sulawesi, and Nusa Tenggara, among others. The plants are being developed to use sources of energy, such as micro-hydro, biomass, and solar power.

GOVERNMENT UNLIKELY TO ACHIEVE POWER TARGET OF 35 THOUSAND MW

by Andi Abdussalam

Jakarta, April 27 (Antara) - The government, since the start of President Joko Widodo's administration in October 2014, has set a target to build power plants, with a total capacity of 35 thousand megawatts (MW) by 2019.          With the current national power capacity of 51 thousand MW, the implementation of the 35 thousand-MW project is expected to increase the national power capacity to 86 thousand MW.          However, after about 2.5 years of administration, the program's target seems unlikely to be achieved in 2019. The most ideal capacity that could be realized under the program until 2019 is only about 19 thousand-20 thousand MW. Hence, by that time, the total national electricity capacity is forecast to reach 70 thousand to 75 thousand MW.          Though the target is unlikely to be achieved in 2019, the government will continue to build power plants until the 35 thousand-MW target is achieved.         "A capacity of 19 thousand-20 thousand MW is the most logical one that could be achieved in 2019," Arcandra Tahar, the deputy energy and mineral resources minister, noted in a discussion on the harmony of the national and regional general energy plans for national energy resilience and reliance at the Gajah Mada Univeristy, Yogyakarta, on Tuesday (Apr 24).

GOVERNMENT PUSHES ON ITS ELECTRICIFICATION PROGRAM

By Andi Abdussalam

Jakarta, March 19 (Antara) - The government continues to accelerate the development of its power plants as part of its efforts to increase the country's electrification ratio of about 99 percent  by 2019.          President Joko Widodo on Saturday inaugurated eight mobile power plants (MPP) with a combined capacity of 500 megawatts (MW). The eight MPPs are located in six provinces of West Nusa Tenggara (NTB), Bangka Belitung, Lampung, Riau, North Sumatra and West Kalimantan.          However, the operations of the eight MPPs were inaugurated by the President through a video conference centered in Mempawah District, Pontianak, West Kalimantan.          The 500-MW MPPs are part of the government's efforts to achieve its 35 thousand MW electricity development program that would increase the country' s current electricity generation capacity from some 50 thousand MW to 85 thousand MW by the end of 2019.          State-owned electricity company PLN President Director Sofyan Basir, in a written statement said on Saturday that the eight MPPs officiated by President Jokowi were 2x25-MW MPP in Jeranjang, Lombok, West Nusa Tenggara); 2x25 MW MPP in Air Anyir, Bangka (Banka Belitung or Babel province); the 4x25 MW MPP in Tarahan, Lampung; and the 1x25 MW in Nias, North Sumatra.

RI SHOULD CUT UNNECESSARY ELECTRICITY COSTS

By Andi Abdussalam

Jakarta, Dec 30 (Antara) - The price of electricity in Indonesia is relatively high due to high investment and production costs, reducing the global competitiveness of the country's electricity board.         The investment and production costs are high because of the many unnecessary expenses involved. Electricity development projects are plagued with the problems of inadequate infrastructure, unstable land prices, bureaucratic procedures, and brokers or middlemen.         To improve competitiveness and efficiency in electricity production, these unnecessary expenses must be cut.          President Joko Widodo (Jokowi) confirmed on Tuesday (Dec 27) that the price of electricity in Indonesia was higher than that of other countries because power companies were saddled with unnecessary costs.          "Our electricity is expensive because players are burdened by too many unnecessary costs," the president said when inaugurating a geothermal power plant (PLTP) in Tomposo, Minahasa, North Sulawesi.

GOVT TO LIFT SUBSIDY FOR 900 VA ELECTRICITY CUSTOMERS

By Andi Abdussalam

Jakarta, Nov 24 (Antara) - Indonesia's Energy and Mineral Resources Ministry (ESDM) will effect a 32 percent electricity tariff increase every two months from January to May 2017 for 900 Volt Ampere (VA) power customers.        The increased electricity tariff will take effect after the government scrapped the subsidy for better-off customers of 900 VA power in three phases by raising the tariff  from Rp585/kWh to Rp747/kWh next January,   to Rp1,032/kWh next March and to Rp1,352/kWh next May.        Thus, with effect from May 2017, there will be no longer subsidy for economically capable 900 VA electricity customers while the remaining 4.1 million poor household customers will still enjoy one.      So far, the government has subsidized the electricity consumption of 23 million 900VA power costomers. Of the number, 18.9 million customers will no longer receive subsidy while the remaining 4.1 million poor household customers will still enjoy one.         The decision to abolish the subsidy for 900 VA household customers was reached in a working meeting between the Minister of Energy and Mineral Resources and Commission VII on energy affairs of the House of Representatives (DPR) on September 22, 2016.        Head of the Communication and Knowledge Management Unit of the National Poverty Elimination Acceleration Team (TNP2K) Ruddy Gobel had said last week (Nov 18) that the subsidy was actually being enjoyed predominantly by a relatively rich group of people.         So far, the government had been providing subsidy for 450 VA and 900 VA electricity customers. According to Gobel, the number of 450 VA power customers reached 22.8 million while 900 VA customers numbered 22.3 million. Thus, the total number of electricity subsidies' recipients was 45.1 million.

GOVT URGED TO CONTINUE 35,000 POWER PLANT PROJECT

By Andi Abdussalam

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.

PRESIDENT INAUGURATES POWER PROJECTS IN VARIOUS REGIONS

By Andi Abdussalam

Jakarta, June 3 (Antara)  - President Joko Widodo visited Aceh, Bangka Belitung, West Kalimantan and Gorontalo this week to inaugurate power plants in seven provinces as part of the government's efforts to implement its 35 thousand megawatts electricity development program.         These power plants are in different provinces, namely Aceh, North Sumatra, Riau, Bangka Belitung, Lampung, West Kalimantan and Gorontalo with a combined capacity of 754 megawatts (MW).          The 754 MW electricity projects are part of the efforts to achieve 35 thousand MW power production target. The government is planning to develop and complete all these plants by 2019. If successful, it will enhance the nation's current electricity generation capacity from some 50 thousand MW to 85 thousand MW by the end of 2019.           President Joko Widodo (Jokowi) said the new electricity plants will help overcome the problem of power shortage and outages in the country.           "One solution to overcome power shortages in districts and cities is to build PLTMG," Jokowi stated while officiating a 184-MW compressed natural gas-fired power plant (PLTMG), located in the premises of Perta Arun Gas company, in Lhokseumawe, Aceh, on Thursday (June 2).

RI CONSERVING ENERGY THROUGH EFFICIENCY MOVEMENT

By Andi Abdussalam

Jakarta, May 17 (Antara) - Indonesia has, over the past few weeks, launched a national movement for energy saving to cut power consumption in the country by 10 percent and save Rp43.2 trillion in the coming three years.         "Many people still consume energy in a wasteful fashion. Let us accustom ourselves to consuming energy efficiently at home, in offices and any other places," Energy and Mineral Resources Minister Sudirman Said told the press on Sunday (May 15).          Minister Sudirman made the remarks during a fun walk in Jalan Thamrin, Jakarta's  business and office district. It was meant to popularize the energy saving drive. The fun walk was from the office building of the ministry of energy and mineral resources to Hotel Indonesia Traffic Circle.          The 10-percent Energy Saving National Movement was launched last month to encourage energy conservation to help save Rp43.2 trillion, an amount equal to the cost of  constructing a 32,000-megawatt steam-powered electricity plant.          The movement will be focused on 12 provinces, namely Jakarta, West Java, Banten, Lampung, East Java, Central Java, Yogyakarta,  North Sumatra, South Sumatra, South Sulawesi, Bali and Riau.

GOVT TO LIFT SUBSIDY FOR 18 MILLION ELECTRICITY SUBSCRIBERS

by Andi Abdussalam

Jakarta, May 5 (Antara) - State-owned electricity company PLN confirmed that its verification of the firm's subsidized household customers revealed that some 18 million of them were actually able to pay the normal power tariff.          Hence, the government is planning to drop the subsidy for some 18 million household customers, probably starting next month in June or July.          According to Energy and Mineral Resources Minister Sudirman Said, the abolishment of the electricity subsidy now awaits the decision of President Joko Widodo.          "We have conducted verifications based on a limited cabinet meeting, which discussed the electricity issues. We have filed a report, and now, we are waiting for the president's decision," Sudirman stated at the Energy and Mineral Resources Ministry's office on April 4.          The minister pointed out that there were 22 million subsidized household subscribers. However, some 18 million of them were no longer entitled to receive subsidy as they had sufficient purchasing power to pay the normal tariff.

GOVT TO DEVELOP RENEWABLE ENERGY FOR RURAL ELECTRICITY

by Andi Abdussalam

Jakarta, April 22 (Antara) - The government is planning to build power generators using new and renewable energies (EBT) to provide electricity for the country's rural areas or villages.          The planned use of new and renewable energy is part of the country's electrification program called "Indonesia Terang" (Bright Indonesia).          Renewable energy is expected to help cover 23 percent of the government's target to produce 35 thousand megawatts (MW) of electricity by 2019.          Currently, 12,659 of 74,754 villages in Indonesia are still without electricity and 65 percent of them are in six provinces in eastern Indonesia.          Therefore, the Ministry of Energy and Mineral Resource is prioritizing the development of power infrastructure in six eastern provinces through the "Indonesia Terang" Program or PIT.          With its 'Indonesia Terang' program, the government has a target to provide electricity for 10,300 villages until 2019, or about 97.35 percent of the country's electrification ratio.

GOVT FOCUSES ELECTRIFICATION SCHEME ON EASTERN REGIONS

By Andi Abdussalam

Jakarta, March 12 (Antara) - The Indonesian government is launching its electrification program called "Indonesian Terang" (Bright Indonesia)  with a target to provide electricity for 10,300 villages until 2019, or about 97.35 percent of the country's electricification ratio.          The government in the program gives an emphasis on villages in the Indonesin eastern regions.  Some 67 percent of the Indonesian rural electrification program  covers the Indonesian eastern regions that stretch from West Nusa Tenggara Province (NTB) to Papua, a senior official said.          "Up to 2019, some 67 percent of the national electrification program will cover areas which stretch from NTB to Papua," Rida Mulyana, the director general of new and renewable energy of the Ministry of Energy and Mineral Resources (ESDM), said Wednesday (March 9).          The 67 percent covered 6,926 villages of the whole target of 10,300 villages to be provided with electricity until 2019, he said. The villages are located in NTB, East Nusa Tenggara (NTT), North Maluku, Maluku, West Papua and Papua which had not yet been supplied with electricity.

GOVERNMENT CONTINUES TO BOOST ELECTRIFICATION RATIO

by Andi Abdussalam

Jakarta, Jan 22 (Antara) - As electricity plays a crucial role in the lives of the people, both at the industrial and household level, hence the government has continued to boost the electrification ratio in the country.          To this end, the government has set an annual target to install an average of three million new consumer connections.          "The government has outlined a program to provide new electricity connections to three million customers every year in its efforts to narrow the electrification gap in Indonesia," Banny Marbun, the commercial division head of state-owned power utility company PLN, stated at the building of the Electricity Directorate General of the Ministry of Energy and Mineral Resources (ESDM) in Jakarta on Thursday.          Indonesia has virtually been able to boost its electrification ratio to a significant level during the past five years.          After seven decades of development up until the end of 2015, the electrification ratio in Indonesia had reached some 87 percent. This figure has significantly increased in the past five years.

MOST OF 2016 POWER PROJECTS TO USE COAL

By Andi Abdussalam

Jakarta, Dec 23 (Antara) - The government has decided to use coal as the main source of energy for its 17,340-megawatt (MW) electricity projects planned to be built in 2016 at a total cost of US$20 billion, or Rp280 trillion.          "Most of the power plants to be built next year will use steam with coal as their fuels. Some 13,049 MW of the total 17,340-MW projects will use coal, while the remaining 4,291-MW projects will use gas, hydro, and geothermal sources of energy," Sofyan Basir, the president director of state-owned electricity company PLN, stated on Tuesday.          The PLN president director noted that agreements on the construction of the 17,340-MW power projects had been signed, and the work on them was expected to commence in early 2016.          The 17,340-MW electricity projects are part of the 35 thousand MW capacity that the government is planning to develop and complete by 2019. This move is aimed at increasing the nation's current electricity generation capacity from some 50 thousand MW now to 85 thousand MW by the end of 2019.          Sofyan remarked that of the 17,340-MW power projects whose contracts had been signed, about 4,291 MW will use clean and renewable sources of energy, such as gas, hydro, and geothermal.

17,000-MW POWER PROJECTS TO START EARLY IN 2016

By Andi Abdussalam

Jakarta, Dec 22 (Antara) - The government will go all out to meet the target to provide an additional 35 thousand megawatt (MW) power to people by the end of 2019, though some termed it an unrealistic plan.          Towards achieving that end, the government will begin the construction of facilities to produce 17 thousand megawatts of the planned 35 thousand MW capacity by early 2016.       "We have decided on the price and 11 companies have registered to participate in the pre-qualification process. God willing, by the beginning of 2016, the projects will start to run," President Director of state-owned electricity firm PLN, Sofyan Basyir, said on Tuesday.          Sofyan made these remarks after a meeting with Vice President Jusuf Kalla, State-owned Enterprises Minister Rini Soemarno and Chief Economic Minister Darmin Nasution. The PLN president director said the construction cost for the project is 30 percent lower than the standard prices in the previous years because the price of steel has been going down.           President Joko Widodo is determined to complete the construction of the projects to produce 35,000-MW by the end of his term in 2019. Therefore, he called on all the related parties to expedite the projects.