Indonesian President sees private investment crucial to reaching energy targets
Kamojang geothermal complex, West Java, Indonesia (Pertamina Geothermal)
Alexander Richter
29 Jun 2016
With state-owned PLN increasingly hesitant to follow government laid out development plants, Indonesia's President Joko Widodo, sees private sector investment as increasingly important to help reach ambitious electricity targets.
Indonesia’s President Joko “Jokowi” Widodo is considering a greater involvement of private investors in the ambitious 35,000 MW electricity procurement program. This follows the hesitation of state-owned utility PLN to work on projects assigned to it, as reported by the Jakarta Post.
“To speed up electricity infrastructure development, I am of the view that the private sector needs a greater role […] especially on new and renewable energy,” the President said in a limited Cabinet meeting on Wednesday.
Jokowi mentioned geothermal and micro hydro as the main types of power generators in which private companies can invest, although according to the development plan, hydroelectric plants should be mostly built by PLN for a total capacity of 1,389 MW, while the private sector, independent power producers (IPP), would only be responsible for 582 MW.”
Of the 35,000 MW that were to be developed under the program, PLN was responsible for procuring 10,000 MW. This goal is though now described as impossible to be developed on its own, according to Sudirman Said, Minister for Energy and Mineral Resources.
It seems like the political will and the business line of PLN are not aligning here.
Still today, Java, the most densly populated island of Indonesia and the most developed are, not everyone has access to electricity. There are 30 to 34 locations that have stalled power generation construction projects.
Source: The Jakarta Post
