Jokowi to issue regulation on 35,000 MW
Friday, June 26 2015 - 12:52 AM WIB
President Joko Widodo (Jokowi) will issue in the near future a presidential regulation on the 35,000 MW power plant development program to ensure a smooth implementation of the program.
Minister of Energy and Mineral Resources Sudirman Said said the presidential regulation is aimed removing all potential obstacles to the projects, including those related to land acquisition, price negotiation, licensing, contractor performance, project management capacity and cross-sectoral coordination.
?We need a strong push to remove obstacles. That?s the purpose of the regulation,? he said.
Director General of Electricity Jarman said there are several points that will be emphasized in the regulation: First, direct appointment is permitted; second, the government may have a stake in the projects; third, domestic market obligation should be implemented; fourth, Law No. 2/2012 on Land Appropriation for Public Interest Projects will be implemented for the projects; fifth, regional governments should support the projects.
As earlier reported, the 35,000 MW program consists of 25,584 MW projects that will be developed by Independent Power Producers and 9,945 MW by state owned firm PT Perusahaan Listrik Negara (PLN).
Providing updates on the progress of the program as of June 2015, Sudirman said of 242 locations prepared for the projects, a total of 100 locations have been appropriated. The remaining 112 locations have yet to be appropriated. ?That means almost 50 percent of the projects have been ready for construction,? he said.
In fact, he said, 19 percent of the projects are now under construction, while the others are still in the phase of planning and procurement.
?Furthermore, 26 percent of the power mother stations needed for the project are now under construction. Sixty five percent is on the planning stage and 10 percent on procurement stage,? he said, adding that 60 percent of funds needed for the 35,000 MW projects have been secured.
Editing by Johannes Simbolon