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.
Earlier, there were doubts regarding the capability of the country to accomplish projects to produce 35,000-MW of electricity by 2019.
The Coordinating Minister for Maritime Affairs, Rizal Ramli, said on Sept. 7 that the construction of the 35 thousand-MW power producing project was not likely to be completed within five years.
"After discussing it, we realized that it is impossible for us to complete the construction of the 35 thousand-MW power project within five years. It is likely to be achieved only in 10 years," he had affirmed.
Ramli had also said that a project, with a combined capacity of 16-18 thousand MW, was most likely to be completed in the coming five years. This is the likeliest possibility to meet the peak electricity requirement in 2019.
However, Vice President Jusuf Kalla said the capacity target of the power project, proposed to be built until 2019, will remain unchanged at 35 thousand MW as planned earlier.
The Vice President made the statement while denying the outcome of previous talks, where it was reportedly decided to reduce the target from 35 thousand MW to only 18 thousand MW.
"This is not true. I have checked it with the president director of state-owned electricity company PLN (Sofyan Basir). There was no such discussion (to cut short the capacity target). Who says it was reduced? Who decided it? Can the Coordinating Minister (Rizal Ramli) change a decision made by the President?" Kalla noted while speaking at his office on September 8, 2015.
On Tuesday (Dec 22), President Joko Widodo gathered about 150 investors in power generator projects to assure himself that the country's targeted power projects will be ready in time.
"In today's meeting, I want to emphasize again that the power projects to generate 35 thousand MW of electricity are needed. It is not a small figure, and, therefore, I always closely monitor the developments regarding these projects. I always summon the president director of the state-owned electricity firm (PLN) and the relevant minister," the president stated while addressing the investors at the State Palace in Jakarta on Tuesday.
"Each time I visit different regions, I always hear the same complaints about power cuts and shortage of electricity. This is not the fault of the PLN director and the minister, but the problem needs to be resolved," remarked the president.
Jokowi also stated that the requirement for 35 thousand MW of electricity must be met, and thus, the government had deregulated certain rules to accelerate the process to achieve this target.
"We have the capacity to develop projects to generate 35 thousand MW of electricity. If the permit issuance process is too complicated and lengthy, then such bureaucratic procedures should be cut short. That is what we are doing now," he explained.
PLN President Director Sofyan Basyir also met with President Jokowi. According to Sofyan Basyir, the contracts for the projects had been signed.
"I have just met with the President. The head of state asked for certainty (about the pace of projects). These projects involve some 46 private investors," Sofyan Basir said.
He said that the 17,000-MW power projects would be built in 12 months. Smaller projects will be built in the ensuing years.
The President also expressed relief on learning that the agreements related to the power projects to generate 17,300 MW of electricity, of the targeted 35 thousand MW, had been signed.
"I have received a report that until the end of this year, agreements regarding projects with a total capacity of 17,300 MW had been signed. I think if we can reach 10 thousand MW this year, the 35 thousand MW target (by 2019) could be achieved," the president emphasized.
On the occasion, the president also sought commitment from individual investors attending the meeting about the realization of the projects, reaching a total capacity of 35 thousand MW by 2019.
An investor of a geothermal power plant in the province of East Nusa Tenggara (NTT) said the project would be completed by the end of 2019, but the president urged to expedite it.
"Can we work day and night? The people are awaiting the realization of the projects. I have to face flak (if things slackened)," Jokowi affirmed.
The president also urged a Japanese investor who is developing a power plant in Batang, Central Java, to achieve the target to realize it in 2020.
"Our plan is to complete it in March 2020 as long as the land clearance process is completed, and it should have already been completed by now," said the representative of the Trunk power plant.
The president acknowledged that the delay in the land acquisition process did hinder the development of the Batang power plant as land clearance lingered on for four years. However, it did not mean that it could not be accelerated.
"I want it to be completed before 2020. It should be completed by 2019. I know that investors from Japan are facing a slight delay (as the process has been hindered due to land acquisition), but I want it to be accelerated. If the work is carried out round the clock, I think it can be achieved," the president emphasized.
On the president's request, the Japanese investor affirmed that efforts would be made to complete the project by 2019.
Until this year, the installed capacity of electricity nationwide is forecast to be 50 thousand MW. Power will be supplied to about 250 million people.
Thus, with the country's current capacity estimated to be 50 thousand MW, the completion of the power plants, with a targeted capacity of 35 thousand MW, is expected to increase the country's total electricity generation capacity to 85 thousand MW by the end of 2019 or when President Widodo's term ends.***3***(A014/INE)EDITED BY INE/H-YH
(T.A014/B/BESSR/A/Yosep) 22-12-2015 20:23:1 |
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