INDONESIA'S AMBITIOUS 35,000 MW POWER PROGRAM TO BE ACCELERATED by Fardah

 Jakarta, June 11, 2016 (Antara) - The fact that many parts of Indonesia still suffer from power shortage at night is a cause for grave concern to President Joko Widodo (Jokowi).

        Power shortage at night means that quite a few Indonesian children are unable to study in their homes.

        Lack of power supply in rural areas and kampongs has also forced many small-scale and micro businesses to shut down.

        Indonesia has a comparatively low overall rate of electrification for a middle-income country. As much as 20 percent of the population representing 50 million people does not have access to electricity, according to Energypedia.

        Some 50 percent of the population in Indonesia that goes without power actually lives in already electrified areas that would need grid densification programs. Besides, many cities have experienced frequent power outages due to power shortage.      
   A limited power supply, which results in the inability to meet growing needs, is caused by the lack of power plant development at the rate of 6.5 percent as compared to the 8.5 percent growth in electricity demand over the last five years.

        A power crisis would occur within the next three to four years if special attention is not paid or no breakthrough is made, the State Utility Company (PLN) has predicted.

         Currently, the total national installed capacity is 50 thousand megawatt (MW) produced by power plants built by the PLN and private companies since the PLN's establishment.

        To address the power shortage, the government plans to increase power capacity by 35 thousand MW, as stated in the National Mid-Term Development Plan 2015-2019.

       The 35 thousand MW project would be evaluated every year along with increases in the country's electricity needs, PLN President Director Sofyan Basir said.

        The program of 35 thousand MW production will require huge investment amounting to more than Rp1.100 trillion.

        The government wanted 40 percent of the 35 thousand MW total to be handled by state-owned utility company PLN, while independent power producers (IPP) would take care of the remaining 60 percent of the project, Cabinet Secretary Pramono Anung said.

        President Jokowi has reiterated his call to accelerate the completion of the 35 thousand MW power plant development project.

       "I always say that I persevere to accelerate and complete the 35 thousand-MW (project) across the country," the president stated while attending a groundbreaking ceremony of the Lontar Extension #4 Steam Power Plant in Lontar Village, Kemiri, Tangerang, Banten Province, on June 10, 2016.

        The head of state has urged regional administrations to support the projects, which will help to boost the economy in their areas.

        Jokowi has instructed relevant ministers and the president director of PLN to conduct frequent on-field inspections to identify problems and seek solutions.

        He is concerned that the islands of Java and Bali may face an electricity crisis in 2019 if their demand for 21 thousand MW of power is not met.

         The head of state has been focusing on the development of power infrastructure by visiting several regions to monitor the construction works of power plants as part of the 35 thousand MW Program.

         The development of power plants, with a combined capacity of 35 thousand MW, is not a mere target but is in line with the demand, Jokowi believes.

        A lack of electricity will hamper investment, industry, and the construction of new factories, according to him.

        Specifically he called for acceleration of the construction work of the Lontar Steam Power Plant to increase power supply to Jakarta and Banten.

        The project should be completed six months earlier than the target set, he remarked.

        The government would continue to offer electricity subsidy to poor families and micro businesses, the president pledged.

        Furthermore, the government is prioritizing the development of power infrastructure in 12.659 remote villages through the "Indonesia Terang" (Bright Indonesia) Program or PIT.

        The prioritized remote villages are mostly located in the eastern Indonesian regions such as Maluku, North Maluku, East Nusa Tenggara, and West Nusa Tenggara, in addition to Papua and West Papua, which have a very low ratio of electrification, Head of PIT Task Force Said Didu said recently.

       The government has estimated that at least Rp100 trillion in investment is required to develop infrastructure under this program, 80 percent of which will be funded by the corporation, while the rest will come from the State Budget.

         Didu revealed that 42.352 out of 82.190 villages in Indonesia are still outside the pale of the electric grid.

        The PIT, which was launched in February 2016, is expected to increase the national electrification ratio from 85 percent in 2015 to 97 percent in 2019.  ***1***
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