SOEs to develop hydro power plants

A presidential ruling (better known here as Perpres) on the appointment of state-owned enterprises (SOEs) engaged in construction and engineering to develop hydro power plants at water dams in the country would soon be issued, Bisnis Indonesia reported on Thursday.

Minister of Public Works and People?s Housing Basuki Hadimuljono said that the Perpres is required because the government would directly appoint SOEs in developing the hydro power plant projects, eliminating the lengthy tender process.

He said that this would not be in breach of existing regulations, as funds for the projects would not come from state budget, but the internal funds of the SOEs.

The ministry is currently in the process of completing assessment as to decide which of the 203 water dams across the country can support the planned hydro power plants. The project is seen crucial to help boost not only power supply in the country but also to increase the role of renewable energy. (*)