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BKPM Receives Power Investment Applications Worth US$8.9bn

8 April 2015 05:34 WIB

TEMPO/Dasril Roszandi

TEMPO.CO, JakartaThe Capital Investment Coordinating Board (BKPM) has received investment applications worth US$8.94 billion in the electricity sector from 12 foreign companies in 2015, an official said.

"In the January to March 2015 period, we received applications for principle licenses on foreign investment (PMA) from 12 companies with a total value of US$8.94 billion," stated Deputy Chief of Capital Investment Planning Affairs of the BKPM, Tamba Hutapea, on Tuesday, as quoted by Antara News.

Of the 12 companies that filed investment applications, three with investment worth US$1 billion were from Japan; one with investment worth US$6.26 billion was from China; one with investment worth US$211.6 million was from a Seychelles company; five with investment worth US$444 million were from Singapore; and two worth US$1.02 billion were from companies jointly owned by several countries.

The locations of the electricity projects are scattered in various provinces, such as Aceh, Banten, West Java, East Java, East Kalimantan, Lampung, Maluku, South Sulawesi, North Sulawesi, and North Sumatra.

"There are 15 locations because two of the 12 companies filed for more than one location," Hutapea explained.

He added that the number of investment applications filed in the January to February 2015 period was larger than those in the same period last year.

In the first semester of 2014, investment applications in the sectors of electricity, gas, and water were worth US$780 million, while in the first three months of 2015, the value of investment in the electricity sector alone reached US$8.94 billion.

"This is only in the electricity sector, thanks to the integrated one-roof service (PTSP) implemented by the central government," Hutapea remarked.

Moreover, President Joko Widodo has reminded state-owned electricity firm PLN of its target to build power plants with a total capacity of 35 thousand megawatts to help provide electricity to domestic industries.

"The target given to PLN was not small. Therefore, it should work (towards the end) as fast as possible," Jokowi, as the president is popularly known, said during his visit to the PLN headquarters in South Jakarta on Tuesday.

The president added that Indonesia needs a great amount of electricity, primarily to help industries that need a considerable amount of power supply.

With regard to reaching the target of 11 thousand megawatts in 2015, Jokowi emphasized that he was confident it could be achieved. He also admitted that he was aware of the constraints faced in the field, but said he was sure they could be resolved.

The target of 10 thousand megawatts was set for 2016 as part of efforts to achieve the target of 35 thousand megawatts in the next five years.

"If the targets of 11 thousand megawatts and 10 thousand megawatts for this year and the next, respectively, are achieved, then it can be said that the target of 35 thousand megawatts is already in hand," the president remarked.

Jokowi further noted that the efforts to achieve the target (of 35,000 megawatts) was set to meet the need for a greater number of industries, such as hotel industries that depend on power supply to support the development of the tourism sector.

(*)




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