TEMPO.CO, Jakarta - United Arab Emirates (UAE) New Renewable Energy (EBT) company Masdar, will partner with PT PLN (Persero)'s subsidiary business, PT Pembangkit Jawa Bali Investasi (PJBI), to build a floating Solar Power Plant (PLTS) in Cirata Reservoir, West Java. The PLTS is claimed to be the largest PLTS in Southeast Asia.
The investment cooperation was included in an agreement signed by Masdar CEO Mohamed Jameel Al Ramahi, PT PLN (Persero) President Director Zulkifli Zaini, as well as PT Pembangkit Jawa Bali Investasi (PJBI) President Director Gunawan Yudi Hariyanto in Abu Dhabi on Sunday, January 12, 2020. The signing of the agreement was also witnessed by Chief of the Investment Coordinating Board (BKPM) Bahlil Lahadalia, Minister of State Owned Enterprises (BUMN) Erick Thohir, Vice Minister of State Owned Enterprises Budi G. Sadikin, and Minister of Trade Agus Suparmanto, as well as a number of other state officials.
"The investor of this power plant is Masdar, and it has been executed. It [Masdar] is the biggest EBT company in the Gulf Region. Chief of BKPM has said that the government will accelerate investment permits in the future, especially related to the development of the EBT," said BKPM Sectoral Promotion Director, Imam Soejoedi, in a written statement in Jakarta, on Monday, January 13, 2020.
Investment for the PLTS has reached a value of IDR 1.8 trillion, and has set a new record for the biggest solar power plant in the ASEAN region, after the Cadiz Power Plant in the Philippines, with a capacity of 132.5 MW. Chief of BKPM Bahlil Lahadalia, has said that one of the most important reasons to accelerate the investment process is due to EBT's portion in the national energy composition still being limited, only about 10 percent of the national energy composition in total.
In fact, the government is targeting EBT's portion in the national energy composition to reach 23 percent by the year 2025. Furthermore, the current portion of electricity generated by solar power plant in the existing national electricity capacity is only 5 MW.
As much as 16 cooperation between Indonesia and the UAE has been agreed, five of which has been signed between the two countries' governments, and 11 of which has been signed by private businesses in the two countries. This includes a Power Purchase Agreement (PPA) of the 'Floating Solar PV PP 145 MWAC' in Cirata Lake, West Java, between consortium of investors, PT PBJ Investasi (PT PJBI and Masdar) as well as PT PLN (Persero), with a value of USD 129 million.