GE, Barata sign MoU to collaborate on local manufacturing

By Firmansyah Sembiring

General Electric (GE) and Indonesia?s state-owned manufacturing and engineering firm PT Barata Indonesia signed a MoU on Wednesday to collaborate on manufacturing parts and provide services for GE?s aero derivatives, heavy duty gas turbines, boilers for coal-fired power plants and renewable energy solutions.

In addition, GE said it is committed to support a technology pilot that aims to accelerate rural electrification across Indonesia, a key priority of the Indonesian Government?s poverty alleviation program.

GE said in a statement that the MoU was signed alongside the GE Future Electricity Summit held jointly by the company and the Indonesian Chamber of Commerce and Industry (KADIN).

?We are pleased to collaborate with GE Indonesia on manufacturing parts and provide services for GE?s aero derivatives, heavy duty gas turbines, boilers for coal-fired power plants and renewable energy solutions,? said Silmy Karim, CEO PT Barata Indonesia in the statement. ?This is a strategic milestone for PT Barata Indonesia to become a world class engineering procurement company.?

During the summit, business and government leaders discussed the digital transformation of the electricity sector and how digital solutions, now commercially available, can improve power generation and distribution across Indonesia. These digital solutions are expected to deliver improved efficiencies, reduce energy costs and provide greater access to electricity. On the policy side, summit participants discussed a range of key regulatory issues including human capital and tariffs.

?GE continues to expand the local content in our solutions that we bring to the country, and the collaboration with Barata Indonesia is part of this commitment,? Steve Bolze, president and CEO of GE Power said. ?We applaud President Joko Widodo?s commitment to increase the country?s electrification rate and the tremendous economic opportunity he is creating for Indonesia. We share his progressive vision that access to electricity is foundational to economic growth, job creation and significant advances in quality of life.?

Summit participants also discussed GE?s collaboration with state-owned electricity firm PT PLN, several of which were completed in six months after initial discussions. In June of this year, GE brought on-line a 100 MW mobile plant in Gorontalo, as part of Indonesia?s 35 GW program. Most recently, GE worked with PLN Batam to commission the first of eight projects, a 50MW plant using GE?s TM2500 Fast Power solution in Jeranjang, Lombok.

GE also announced its commitment to fund a pilot project in Eastern Indonesia to showcase technology which can help electrify remote villages. This pilot is in support of the government?s Bright Indonesia program which aims to electrify more than 12,600 villages. The program will deploy digitally-enabled hybrid power solutions. GE is also testing this hybrid technology in India and Africa.

?Access to electricity is a basic human right,? said Bolze. ?We recognize the challenge ahead and welcome the opportunity to work with the Indonesian government and PLN to bring to market the most innovative solutions available for this unique and important region.?

GE has been a development partner with Indonesia for over 70 years and employs approximately 1,300 employees across the country. Today, greater than 30% of Indonesia?s power generation installed base is powered by GE technology. These power generation solutions include mobile power plants, affordable fossil fuel-based generation, combined cycle gas and aero derivative turbines, reciprocating engines and renewable energy solutions that offer long-term sustainability.

Editing by Reiner Simanjuntak