Indonesia to experience electricity crisis in 3 to 4 years to come

State electricity firm PT PLN's corporate secretary Lili Tjarli has predicted that Indonesia will experience an electricity crisis, where demands far exceeding supplies, if there is no new development of power plants in Java and Bali in the next three to four years.

"The assumption is that, with the electricity demand growth rate of about 10 percent per annum, it needs at least an additional supply of between 1,000 MW to 1,500 MW per annum. On paper, there has been an over supply of around 4,000 MW to 5,000 MW in our Java-Bali system. But with that rate of demand, the supply will eventually not enough," he said.

Lili said that in the next five years, PT Indonesian Power (formerly PT PLN Pembangkit Tenaga Listrik Jawa Bali/ PJB I) will focus its investment plan on new power generation.

In the long run, Indonesian Power would build new power plant in Ciasem, West Java, to meet an ever increasing electricity demands from industrial customers in Cikampek, Jababeka and its surrounding areas.

"At least, with this difficult situation in finding financing syndication, we will maximize the usage of our existing installed capacity."

In addition, Indonesian Power would increase installed capacity of electricity production in a number of 127 power plants it manages. The first power plant whose capacity would be improved is steam-powered Tanjung Priok power plant.

"We will re-power it (Tanjung Priok plant). Then, old machinery would be transferred to and used in Bali, including Pemaron, Singaraja or in Amlapura," he said," he said after attending a ceremony on the handover of ISO 9002 certificate from state owned certification company PT Sucofindo to Tambak Lorok (Semarang) power generation unit (UPS) managed by Indonesian Power.

ISO

Meanwhile, Indonesian power president Firdaus Akmal said that the company's Semarang power generation unit followed the steps of two other power generation units - namely Priok and Saguling -- in securing an ISO 9002 certificate for its improved electricity production system.

"In near future, other units are expected to get ISO 9002 certificates. And all power generation units will also get ISO 1400 for environmental management procedures," Firdaus said.

He said installed capacity of power plants under the Semarang power generation unit reached 1,446 MW in Semarang and 1,335 MW in Tambak Lorok.

Indonesian Power recorded a net profit of Rp 286.9 billion last year, a sharp increase from Rp 83.41 billion recorded in the previous year. Its total assets reached Rp 15.8 trillion.

It sold a total of 37,000 Giga Watt per Hour last year, and 29,239 GWh as of September this year. (*)