Kadin wants power supply assurance for smelters
Friday, June 29 2012 - 12:53 AM WIB
Indonesian Chambers of Commerce and Industry (Kadin) has requested state owned utility firm PT PLN to ensure the electricity supply for dozens of smelters many mining companies plan to build in the near future.
Kadin Deputy Chairman M. Natsir Mansyur said that up to now 167 industry players have submitted a proposal to build smelter to process raw materials.
?There are about 167 companies. Of these, let?s say we?ll have 40 new smelters, that would require at least 1,500 MW of electricity supply,? he said during a discussion forum with PLN representatives in Jakarta on Thursday.
PLN meanwhile provides two options of power supply for smelters. President Director Nur Pamudji said the first option is for miners to use the Java power system by building the smelter in Java. ?For the power system in Java, in particular in East Java, the power supply is very ready,? he said in the meeting.
If the smelters are to be built nearby the mining site, which is mostly outside Java, PLN would still be able to provide the power supply. The consequence however, the price will be higher than the 9 U.S. cent per kWh set for electricity in Java.
Editing by Dadan Wijaksana