If Tanjung Jati-B delayed, PLN needs $1.4 billion to boost capacity

State owned electricity company PLN will need at least US$1.4 billion in fresh funds to increase the capacity of existing power plants especially the steam powered electricity plants PLTU Muara Karang and PLTU Tanjung Priok if the construction of the steam powered Tanjung Jati-B electricity plant is delayed, the company?s president director Eddie Widiono has said.

"If the Tanjung Jati-B project is not realized this year, there should be repowering of PLTU Muara Karang and PLTU Tanjung Periok to prevent an acute power crisis in Java and Bali in 2006," he told Kompas daily. "The repowering of the two electricity plants is the most possible alternative in coping with the possible power shortage," he added.

Eddie hoped that the Tanjung Jati-B project which would have a capacity of 2 x 660 MW could be soon realized. If not, there would a shortage of supply because the project is the only plant that could help meet the expected surge in the power demand in 2005.

The construction of the Tanjung Jati-B project has been impeded by tax problem. Minister of Energy and Mineral Resources Purnomo Yusgiantoro has asked Finance Minister Budiono to immediately settle the problem to ensure that the construction of the project could be carried on schedule.

Eddie guarantees that the electricity supply would not face problem this year. The shortage of supply could occur in 2004 or 2005 if there is no fresh supply during the period. (*)