ICMA questions government seriousness in 35 GW projects

By Tri Subhki R

The Indonesian Coal Mining Association (ICMA) raised question over the government?s seriousness to involve private sector in the development of the much-hailed 35 GW power plant projects, slated to be completed in 2019.

The association commented on the recent delay by the state-owned electricity firm PT PLN in submitting the electricity procurement business plans (or RUPTL) to the Ministry of Energy and Mineral Resources.

?This is a dilemma. RUPTL is (business) plan and it is a guidance for business players to make investment decision (in power plant projects). The question is how can we make investment without such plans (RUPTL)?,? ICMA Chairman Pandu Syahrir told reporters at his office on Thursday.

According to him, even if all tenders related to 35 GW projects are signed today (May 19) and financial closure can be completed in January 2017, the power plants would only come into operation in 2020, not in 2019 as scheduled by the government.

?The problem is how the government makes sure that the program could run,? he said.

Pandu acknowledged that many of the association members were interested to participate in tenders for big-scale coal-fired power plant projects, but it was then cancelled by PLN. He did not elaborate.

Director General of Electricity Jarman previously said that PLN has been warned to submit to the MEMR the revised RUPTL by March 20 for approval. He said that if PLN fails to meet the deadline, the ministry will formulate its own RUPTL and that PLN must realize the targets set in the plan.

Editing by Reiner Simanjuntak