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Indonesia’s 2nd stage electricity fast-track program far below target

JAKARTA (Rambu Energy) – The so-called 10,000 MW second stage electricity fast-track program launched by the government few years ago is far behind scheduled. So far, only 55 MW or equal to 0.55 percent from target has been realized.

The government relies on private sector to realize the fast-track program, which are mostly hydro and geothermal power plants.

President Director of PT PLN Nur Pamudji said in the first 10,000 MW electricity fast-track program, PLN has developed 7,300 MW of power plants, while 1,300 MW power plants are still under trial process. As much as 800 MW of power plants are being developed.

“Most of the 10,000 MW fast-track program are independent power producer (IPP), while PLN’s portion is small. This is a problem when power plant developments are handed over to private sector. The purpose is good, but the
realization is poor,” Nur Pamudji was quoted by detik.com as saying.

Private IPP so far has blamed government bureaucratic procedure and overlapping regulations as among reasons behind the poor progress of the hydro and geothermal power plant development.

Observers on the other hand blamed the government for lack of support and coordination in speeding up the second stage electricity fast-track program.

He noted the demand for electricity consumption grows over 5 percent per annum. If the power plant development is slow, it could hamper the country’s economic development in the future.

PLN construction director Nasri Sebayang said earlier that 36 out of 52 geothermal projects included in the second stage of the electricity fast-track program would not meet the completion target of 2016.

Six plants with a combined capacity of 360 MW are delayed as the projects are located in conservation forests, while 16 other projects with a capacity of 1,510 MW encounter technical problems.

As many as 14 more projects with a total capacity of 825 MW are yet to be tendered by PLN.

Nur Pamudji said to meet the growing demand for electricity, the new government needs to undertake breakthroughs to develop the country’s electricity sector, otherwise the government’s ambitious economic growth target could be hampered. (*)

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