Presidential decree on Phase II 10,000 MW crash program issued

President Susilo Bambang Yudhoyono has signed a presidential decree to accelerate the development of power plants under the Phase Two 10,000 megawatt (MW) power plant program.

Director General of Electricity at the Ministry of Energy and Mineral Resources J. Purwono said on Wednesday the decree, issued on Jan. 8, assigns the state power firm PT Perusahaan Listrik Negara (PLN) to speed up development of power plants that use renewable energy, coal and gas.

The decree stipulates that government will guarantee subsidy for PLN to enable it fulfill its responsibilities, including the payment of electricity bought from independent power producers (IPPs).

The decree does not specify the capacity, number and sites of the power plants to be built, as the issues will be addressed in a ministerial decree. ?We expect the Minsiter of Energy and Mineral Resources to issue the decree at the end of the month,? Purwono said.

The ministry is also finalizing a draft presidential decree on power purchase agreement (PPA).

"The draft has been 90 percent completed," he said. (bernard)