PLN won?t repeat tender of PLTU Jawa-5 project: President Director

President Director of state-owned electricity firm PT PLN, Sofyan Basir stressed that the company would not repeat the tender of the 2x1,000 MW PLTU Jawa-5 coal-fired power plant project, dismissing an earlier statement made by company Director Supangkat Iwan Santoso.

Sofyan was quoted by Bisnis Indonesia as saying Wednesday that the state-utility firm will take over the project, and would team up with private investor. But he stressed that PLN would be a majority shareholder in the PLTU Jawa-5 project.

He explained that according to Presidential Regulation No 4/2016 on the acceleration of electricity infrastructure projects, PLN is allowed to directly select independent power producer as partner, without tender, in power plant projects where the state utility is the majority shareholder.

?(It) is allowed to partner with IPP, but the important thing is that (PLN) must be majority (shareholder), with more than 50 percent (interest). If (PLN stake) is above 50 percent, we can own the project, without tender,? he said.

Sofyan reiterated that by taking over PLTU Jawa-5 project, construction process can be faster as the company will be directly involved in securing the coal supply and funding requirement.

PLN Director Supangkat said previously that the company will repeat tender for the PLTU Jawa-5 project this year after suspending the process earlier last month.

When the tender was suspended, two consortia were finally competing for the project including a consortium comprising of China Oceanwide Shanghai Electric and PT.Pembangkitan Jawa Bali, and consortium of PT Sumber Segara Prima Jaya, CNEC,and PT Wijaya Karya Tbk.

In the current 2016-2025 electricity procurement business plan (RUPTL) of PLN, which has been recently approved by the government, the status of the PLTU Jawa-5 project is allocated for independent power producer (IPP).

Sofyan said that PLN will soon submit a proposal to change the status.

Meanwhile, Director General of Electricity Jarman said that there has been no proposal yet from PLN to change the status of the PLTU-Jawa 5 project. He added that any plan by PLN to change status must get the approval of the government as the project has been included in the 2016-2025 RUPTL. (*)