Investment in power sector to reach $7.54 billion this year

Investment in the power sector is expected to reach US$7.54 billion this year and the money will be used to increase the installed capacity of the country?s power plants to 33,552 megawatt and the total supply to about 156,957 GWH, according to a senior official of the Ministry of Energy and Mineral Resources.

The ministry?s Director General for Electricity J. Purwono said in Jakarta last week that the government was expected to achieve an electrification ratio of 66.3 percent this year.

He said that of the total capacity, PLN would contribute about 28,041 MW, independent power producers (IPP) about 4,244 MW and captive power about 1,066 MW. This year, the power sector is also expected to employ about 76,165 people, he added.

The Java and Bali power grid is also expected to receive additional power supply of about 1,890 MW from a number of power plants currently being built under the government?s fast-track program, he said.

The new power plants which would operate this year would include the Labuhan power plant (600 MW), the Indramayu power plant (660 MW and the Rembang power plant (630 MW), he added. (*)