Kedutaan Besar Republik Indonesia
Ottawa
Embassy of the Republic of Indonesia
Ambassade de la RÉpublique d'Indonésie

Indonesian minister optimistic to reach power development target of 35,000 MW

Jakarta (ANTARA News) – Minister for Energy and Mineral Resources Sudirman Said expressed optimism to reach the target of developing new power plants with a total capacity of 35,000 megawatts (MW) until 2019.

“Seeing the progress in preparation, make us optimistic, so is in finance. I have not seen any problem until today,” Sudirman said here on Sunday.

He said contracts would be signed for development of new power plant with capacity of least 10,000 MW with Independent Power Producer (IPP).

Power purchase agreements would be signed by the IPPs and the national utility company PLN, which would buy the power to be generated by the IPP.

In addition the capacity of some of the existing power plants would be expanded such as the Cirebon, Tanjung Jati and Cilacap power plants.

Soon a power plant with a capacity of 1,000 MW would be built, the minister said , adding the ground breaking ceremony would take place to mark the construction of 2×650 MW power plant in South Sumatra and another in Cilacap, Central Java.

Sudirman said currently construction has been 20 percent completed both for the generating facilities and the transmission system.

He said more than 70 percent of the remaining projects under the Fast Track Program (FTP) has been more than 80 percent completed.

“This makes me optimistic. The condition in the field convinces me that the target would be reached,” he said.

In the coming months there would be more groundbreakings and power purchase agreements would signed, he said.

He said in carrying out the projects of 35,000 capacity power plants, the government learns from the experience in the implementation of the first and second FTP.

The previous government launched two programs called FTP I and II building power plants with a total capacity of 30,000 MW in 10 years.

Completion of the programs have been delayed a number of years mainly on difficulty in land clearing, finance.

Sudirman said the government would continue to go ahead with its program and to reach the target.

“The president has said the target would be revised down. The duty of the ministers are to find a solution to any problem in order to reach the target,” he said.

Coordinating Minister for Maritime Affairs Rizal Ramli has raised controversy when he said that the target was too high and should be revised down.

Source: www.antaranews.com, Monday 31 August 2015