Power Grid Needs a Jump-Start

Jakarta Globe, Arientha Primanita, Nov 05, 2014

Two workers fix an electricity network operated by state-owned electricity
firm Perusahaan Listrik Negara (PLN) in Semarang. (JG Photo/Dhana Kencana)

Jakarta. Indonesia needs more than 35,000 megawatts of additional electricity supply in the next five years to support the 7 percent economic growth, the target set by President Joko Widodo.

Southeast Asia’s largest economy now has nearly 52,000 MW of installed electricity capacity nationwide to support its population of over 250 million people.

About 91 percent of current capacity is comes from power plants built and owned by state-run utility company Perusahaan Listrik Negara, while the rest comes from other sources including independent power producers (IPP), who sell the electricity to PLN.

“In the next five years, there should be at least an additional 35,000 MW of capacity to support economic growth of between 6 percent and 6.5 percent. If we want up to 7 percent growth, then we must add more than 35,000 MW of capacity,” the Ministry of Energy and Mineral Resources’ director general for electricity, Jarman, said in remarks at event for Indonesia Infrastructure Week on Wednesday.

He added that demand for electricity is growing by about 3 percent every year.

PLN president director Nur Pamudji said the company, which controls most electricity distribution nationwide, can contribute about 15,000 MW of additional power, while the remainder (20,000 MW) is expected to come from IPPs.

President Joko called on Tuesday for investments in the electricity sector as the country needs more power plants to support the economy and people’s welfare.

“Power plants are really needed throughout our archipelago. The problem is electricity. If the electricity is available, industry and manufacture can enter,” the president said at the national working meeting in the State Palace.