Private Power Producers Ready to Supply 800MW to New Capital City

TEMPO.CO, Jakarta - The potential for profits and benefits from relocating the capital city will not only be enjoyed by the property sector, but also the electricity industry. Independent power producers (IPP) have expressed their readiness to help PLN supply electricity to the new capital city.

Rizal Calvary Marimbo, executive director of the Indonesian Private Power Producers' Association (APLSI), said private power companies have a long experience of partnering with PLN.

"There is no problem, if asked, we will help," he said in an official statement, Tuesday, August 27.

Rizal said APLSI also encourages the use of renewable energy in the new capital city. Currently, the electricity reserve in Kalimantan is 331.5 MW.

He estimated that in next two years IPP will be able to supply 800 MW to PLN's network from two power plants. According to the plan, by 2028 power plant development in the region will produce 4,324.8 MW.

"It is estimated that electricity demand in the new capital would be around 1,000-2,000 MW," he said.

Kalimantan Island is also rich in energy sources, so there is no need to worry about electricity availability.

According to Rizal, coal, oil and gas could be used as sources for power generation. Nevertheless so, APLSI still encourages the use of renewable energy such as palm oil, solar panels (roofs and farms), wind turbines, hydropower, and Biomass. Therefore, the role of the private sector in supplying electricity for the new capital must be reinforced and encouraged. 

So far, Rizal said, President Jokowi wanted private sector's roles increased as to reduce state budget use. "We are ready to support the President's program with PLN."

On Monday, President Joko Widodo announced that the capital city of Indonesia would be moved from Jakarta to parts of North Penajam Paser and Kutai Kartanegara Regencies.

"The most ideal location of the new capital city is in parts of North Penajam Paser Regency and parts of Kutai Kartanegara because the two regencies already have ample infrastructure, and the government has a land area of 180,000 hectares there," Jokowi said.

A number of property companies also expressed optimism that they could gain profits in the new capital. Agung Podomoro Land, for example, has its Borneo Bay City superblock project in Balikpapan. Sinar Mas Wisesa, a subsidiary of the Sinarmas Group, also has the Grand City Balikpapan project. Ciputra Residence is also confident that business prospects will soar following the decision to relocate the capital city.

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