PLN plans to invest more than $6 billion next year
Wednesday, October 20 2010 - 02:27 AM WIB
The amount would be fulfilled from both external and internal sources, PLN planning and technology director Nasri Sebayang said.
?Two third of the funds needed will come from bank loans, of which we have already secured a portion of the required amount. The remaining funds will come from internal sources and bonds," Nasri said, adding that the 2011 capital expenditure would not be very different from this year?s figure.
Most of the money would be used for continuing PLN?s first and second phase fast track programs for constructing small-size mostly coal-fired power plants in 70 locations with a total combined capacity of 800 megawatts (MW), he said.
The remaining funds will be used for transmission and distribution systems and for developing new and renewable energy projects.
PLN would also need around Rp 120 trillion for operational expenditure in 2011, Nasri said.
However, PLN finance director Setio Anggoro Dewo said both the capital expenditure and the operational expenditure would still need approval from the company?s shareholder, which is the government through the State-Owned Enterprises Ministry.
In its electricity provision plan, PLN expects to generate 4,985 MW of additional power supply in 2011. The figure accounts for around 80 percent of the total additional power expected to be generated in Indonesia next year, which is estimated to reach 6,248 MW Of the total 4,985 MW additional supply, 4,090 MW is expected to come from coal-fired power plants, 820 MW from gasfired power plants, and the remaining 75 MW from geothermal, diesel, and mini-hydro power plants.
Apart from PLN, power in Indonesia is also generated by independent power producers (IPPs). The IPPs expect to develop power generation capacity of about 1,262 MW in 2011, or around 20 percent of the total new power expected to be generated in Indonesia next year. (*)