Aiming to increase the supply of electricity throughout Indonesia, the government has launched an ambitious project targeting the realization of 35,000 Megawatt (MW) power plant projects. The project has officially been included under the Minister of Energy and Mineral Resources Decree No. 74K/21/MEM/2015.
This ambitious project will include the construction of 109 power plants, 35 of which will be organized by PLN, with a maximum capacity of 10,681MW. Meanwhile, the private sector (independent power producers) will be responsible for the remaining 74 projects with a maximum capacity of 25,904MW.
Sudirman Said, Minister of ESDM, explained that this ambitious project is being hampered by land acquisition and licensing processes. To overcome these difficulties, the government will establish a national committee. Representatives of relevant stakeholders will participate in the committee with the Coordinating Minister of Economic Affairs as its chair.
Mr. Said admits that a ministerial-level policy for this large project is not sufficient. This is due to the fact that the 35,000 MW project involves both inter-ministerial cooperation and cooperation with regional governments. He believes that a presidential regulation will be sufficient to cover all necessary requirements including licensing procedures.
“We are hoping for stronger legal protection so that these matters can be accommodated,” said Mr. Said.
Economist Hendri Saparini, however, has criticized the government’s decision for this power plant project on the basis it may lead the government to neglect other sectors. According to her, investing in electricity and energy should be a supporting element.
“If the intended investment is agriculture, then they should provide every tool necessary for those projects first,” Said Mrs. Saparini.
Mrs. Saparini further concluded that Indonesia should redefine its system for investments. For instance, the government needs to look at other sectors such as health and education as its priorities. She also doubts that the 35,000 MW Power Plant Project will serve as a strategic program that can boost the nation’s economy.
Aiming to increase the supply of electricity throughout Indonesia, the government has launched an ambitious project targeting the realization of 35,000 Megawatt (MW) power plant projects. The project has officially been included under the Minister of Energy and Mineral Resources Decree No. 74K/21/MEM/2015.
This ambitious project will include the construction of 109 power plants, 35 of which will be organized by PLN, with a maximum capacity of 10,681MW. Meanwhile, the private sector (independent power producers) will be responsible for the remaining 74 projects with a maximum capacity of 25,904MW.
Sudirman Said, Minister of ESDM, explained that this ambitious project is being hampered by land acquisition and licensing processes. To overcome these difficulties, the government will establish a national committee. Representatives of relevant stakeholders will participate in the committee with the Coordinating Minister of Economic Affairs as its chair.
Mr. Said admits that a ministerial-level policy for this large project is not sufficient. This is due to the fact that the 35,000 MW project involves both inter-ministerial cooperation and cooperation with regional governments. He believes that a presidential regulation will be sufficient to cover all necessary requirements including licensing procedures.
“We are hoping for stronger legal protection so that these matters can be accommodated,” said Mr. Said.
Economist Hendri Saparini, however, has criticized the government’s decision for this power plant project on the basis it may lead the government to neglect other sectors. According to her, investing in electricity and energy should be a supporting element.
“If the intended investment is agriculture, then they should provide every tool necessary for those projects first,” Said Mrs. Saparini.
Mrs. Saparini further concluded that Indonesia should redefine its system for investments. For instance, the government needs to look at other sectors such as health and education as its priorities. She also doubts that the 35,000 MW Power Plant Project will serve as a strategic program that can boost the nation’s economy.