Marcell Sihombing, Kartini L. Makmur
State Electricity Company (PLN). Photo by: SGP
With the ultimate goal of expanding Indonesia’s electricity grid, the government will continue to push for the realization of its ambitious 35,000 Megawatt (MW) power-plant project, which was originally initiated by the previous administration. Having learned from past experience, Indonesia’s State Electricity Company (PLN) has stressed the need to anticipate any possible construction delays regarding this so-called mega project.
By way of example, PLN points out that the Fast Track Programs (FTP 1 and FTP 2), a similar megaproject also established by the previous administration, experienced a number of difficulties during the construction stage which caused delays to the completion of several electricity projects.
Nasri Sebayang, PLN’s Business Director for the Java and Bali Areas, asserted that those involved in the latest 35,000 MW project could learn some valuable lessons from the implementation of FTP 1 and FTP 2, specifically regarding the anticipation and handling of any problems that may arise.
“We must learn our lessons from the various problems that cropped up during the construction stage of the previous FTP 1 and FTP 2 electricity-infrastructure projects. We need to move on and anticipate possible difficulties, so that things will go more smoothly this time,” asserted Mr. Sebayang at PLN’s Central Jakarta office on Thursday, 7 January 2016.
Mr. Sebayang further revealed that the FTP 1 and FTP 2 projects offered several important lessons as regards delays to the completion of electricity and infrastructure projects. Sebayang stated that land-acquisition issues sat right at the top of the list of potential problems.
Other substantial issues include contractors who cannot commence work on time owing to financial difficulties, and also developers who ultimately lack the requisite capabilities needed in order to construct power plants. Mr. Sebayang also stressed that licensing procedures had proved to be highly time-consuming in the past, to the point where the entire construction process ended up being jeopardized.
Mr. Sebayang reminded all relevant parties that these issues need to be anticipated in order to ensure that similar situations do not arise again during future projects, and stated firmly that coordination between all of the relevant institutions involved in such projects, specifically law enforcers, was vital, as was the taking of various anticipatory and preventive measures.
Mr. Sebayang expressed his belief that support from the government and law enforcers should take the form of a mutual commitment to an electricity-infrastructure construction process that remains free from corruption, collusion, and nepotism.
Moreover, Mr. Sebayang also asserted that the acceleration of the 35,000 MW project could be achieved through the formulation of suitable programs, regulations, and policies by all of the relevant institutions. Such initiatives, however, should be firmly predicated upon good corporate-governance principles.
“We hope that a Presidential Regulation on the Acceleration of the Construction of Electricity Infrastructure can be immediately issued and will then serve as a regulatory framework for actual implementation in the field,” stated Mr. Sebayang.
Indonesia’s ESDM Minister, Sudirman Said, has already promised on a number of occasions that the government would soon issue a presidential regulation. This regulation will, according to Said, tackle a number of substantial issues in a bid to accelerate the 35,000 MW power-plant project and will include provisions on guarantees, financial assistance, dividends, partnerships, and on the like.
Minister Said also asserted that his institution was aiming to issue the regulation in question early this year and revealed that all of the necessary drafting processes had already been completed. All that now remains is for presidential approval to be granted.
(rfs/sp)
Marcell Sihombing, Kartini L. Makmur
State Electricity Company (PLN). Photo by: SGP
With the ultimate goal of expanding Indonesia’s electricity grid, the government will continue to push for the realization of its ambitious 35,000 Megawatt (MW) power-plant project, which was originally initiated by the previous administration. Having learned from past experience, Indonesia’s State Electricity Company (PLN) has stressed the need to anticipate any possible construction delays regarding this so-called mega project.
By way of example, PLN points out that the Fast Track Programs (FTP 1 and FTP 2), a similar megaproject also established by the previous administration, experienced a number of difficulties during the construction stage which caused delays to the completion of several electricity projects.
Nasri Sebayang, PLN’s Business Director for the Java and Bali Areas, asserted that those involved in the latest 35,000 MW project could learn some valuable lessons from the implementation of FTP 1 and FTP 2, specifically regarding the anticipation and handling of any problems that may arise.
“We must learn our lessons from the various problems that cropped up during the construction stage of the previous FTP 1 and FTP 2 electricity-infrastructure projects. We need to move on and anticipate possible difficulties, so that things will go more smoothly this time,” asserted Mr. Sebayang at PLN’s Central Jakarta office on Thursday, 7 January 2016.
Mr. Sebayang further revealed that the FTP 1 and FTP 2 projects offered several important lessons as regards delays to the completion of electricity and infrastructure projects. Sebayang stated that land-acquisition issues sat right at the top of the list of potential problems.
Other substantial issues include contractors who cannot commence work on time owing to financial difficulties, and also developers who ultimately lack the requisite capabilities needed in order to construct power plants. Mr. Sebayang also stressed that licensing procedures had proved to be highly time-consuming in the past, to the point where the entire construction process ended up being jeopardized.
Mr. Sebayang reminded all relevant parties that these issues need to be anticipated in order to ensure that similar situations do not arise again during future projects, and stated firmly that coordination between all of the relevant institutions involved in such projects, specifically law enforcers, was vital, as was the taking of various anticipatory and preventive measures.
Mr. Sebayang expressed his belief that support from the government and law enforcers should take the form of a mutual commitment to an electricity-infrastructure construction process that remains free from corruption, collusion, and nepotism.
Moreover, Mr. Sebayang also asserted that the acceleration of the 35,000 MW project could be achieved through the formulation of suitable programs, regulations, and policies by all of the relevant institutions. Such initiatives, however, should be firmly predicated upon good corporate-governance principles.
“We hope that a Presidential Regulation on the Acceleration of the Construction of Electricity Infrastructure can be immediately issued and will then serve as a regulatory framework for actual implementation in the field,” stated Mr. Sebayang.
Indonesia’s ESDM Minister, Sudirman Said, has already promised on a number of occasions that the government would soon issue a presidential regulation. This regulation will, according to Said, tackle a number of substantial issues in a bid to accelerate the 35,000 MW power-plant project and will include provisions on guarantees, financial assistance, dividends, partnerships, and on the like.
Minister Said also asserted that his institution was aiming to issue the regulation in question early this year and revealed that all of the necessary drafting processes had already been completed. All that now remains is for presidential approval to be granted.
(rfs/sp)