Government revises down 2019 power capacity target to 25,000 MW

By Brigida Ernestina Elu Wea

Coordinating Minister for Maritime Affairs Luhut B. Panjaitan, who is also interim Minister of Energy and Mineral Resources, said that only 25,000 MW of power plants that are expected to start commercial operation in 2019, down from the initial target of 35,000 MW.

Luhut said on Friday that the government has to revise down the target considering the current progress of the projects.

He said that power plant projects that are likely to enter commercial date of operation (COD) in 2019 are those which managed to reach financial close this year. Projects which fail to reach financial close this year are unlikely to be completed by 2019.

The government of President Joko Widodo has set an ambitious 5-year plan to develop a combined 35,000 MW power plants until 2019 in a bid to increase power supply in the country to help accelerate economic growth.

?We have heard report from the president of PLN (state utility) and power sector association on the progress of the projects, where we see the processes have yet to run well? There are plenty of adjustments that have made us to set a realistic target,? Luhut said.

PLN President Director Sofyan Basir said that aside from the issue of financial close, lack of transmission facility is also seen as another obstacle to realize the 35,000 MW target. As such, he said that developing new transmission facilities is urgent to facilitate the construction of new power plants.

Editing by Reiner Simanjuntak