Indonesia to build 600 MW gas-fired power plant
Wednesday, October 30 2002 - 01:55 PM WIB
Indonesia's annual power demand is currently estimated to be growing by around 10 percent, one of the most robust power markets in Southeast Asia.
"The government has decided to build a 600 MW gas-fired power plant in Jakarta. We expect the plant will be on stream in 18 months. The government has provided $500 million for this project," Purnomo told reporters.
"This project is important because if we do not build the plant then the islands of Java and Bali will be dark in 2004," he added.
Purnomo has said Java and Bali island will be hit by a power crisis in 2004 if no additional capacity is built.
An official at state-owned electricity firm PT Perusahaan Listrik Negara (PLN) said electricity capacity across the two islands was around 18,000 MW in 2001 and the capacity would be unchanged in 2002.
"Currently the PLN electricity reserve margin is about 22 percent. The margin will fall next year when more demand builds," the PLN official, who declined to be identified, told Reuters.
"The electricity acceptable reserve margin should be at 30 percent," he said.
PLN's bottom line has been battered by the sharp fall in the rupiah since late 1997 when the Asian economic crisis hit Indonesia, as most of the utility's costs are dollar-denominated.(*)