Association calls for minister-PLN synergy in 35,000 MW
Thursday, July 28 2016 - 11:21 AM WIB
Synergy between the ministry as regulator and PLN as operator is of paramount importance to bring the mega program into success.
?As either regulator or operator, we hope both to maintain a synergy. The two institutions (should) open a new page and close the old page so that the 35,000 MW fast-track program can implemented smoothly and quickly,? APLSI?s Daily Chairman Arthur Simatupang said in a statement.
Arthur did not elaborate why he made such a statement. However, observers noticed that the synergy between the previous minister, Sudirman Said, and PLN?s President Director Sofyan Bashir was not quite good as there were cases the latter refused to follow the former?s order.
Arthur praised the new minister for an impressive track record as a professional in the energy sector and his mission of creating energy independence in the country. The mission was unveiled by Archandra in his speech during his installment ceremony on Wednesday.
Arthur noted that the minister underlined the important role of local producers to meet the country?s energy needs and in the end to create energy independence.
?His concept of energy independence is very good. The role of national businesspeople is put in the center. That?s according to our interpretation,? he said.
Meanwhile, APLSI?s Secretary General Priamanaya Djan said both the ministry and PLN needs to create a common perception about the 35,000 MW program. The program requires huge funds, up to Rp 1,189 trillion, which PLN is not capable of providing by itself. Furthermore, the firm is also tasked of building transmission and distribution lines and building power plants in remote areas which are considered not viable economically for investors.
Priamanaya noted that President Joko Widodo (Jokowi) has made it clear that infrastructure projects that are feasible business wise should be given to the private sector, while the state budget should be allocated for development of infrastructure projects in high-risk areas. The government initially allocated 10,000 MW of the 35,000 MW program to PLN, but later cut the PLN?s portion to 5,000 Mw. The portion has been revised again to 10,233 MW in the PLN?s 2016-2025 Electricity Provision Business Plan (RUPTL).
Meanwhile, the progress of the 35,000 MW program until the first half of the year has been slow. President Jokowi also noticed this as he recently said that no progress had been made in the execution of the program. The President even asked all concerned institutions to evaluate all aspects of the project, from the tender process, financing to the plan of its management at PLN.
Priamanaya said restrictions should be put on foreign investors? involvement in the 35,000 MW program, unless they partner with local firms. This is in order to protect the national energy independence and sovereignty.
Editing by Johannes Simbolon