Rizal Ramli: 35,000 MW Project Impossible

TEMPO.CO, Jakarta - Coordinating Minister for Maritime and Resources, Rizal Ramli, said the government's mega power project to have power plants with a total generating capacity of 35,000 MW is impossible to accomplish in five years. The minister said that over the next five years there would likely only be 16,000 MW of electricity generated.

"The rest of the power supply will only be generated in the next period," he said in his office, yesterday.

Rizal even said that PT PLN (Persero) will suffer a huge loss from the project, as there is a capacity burden that the company will have to bear alone.

He said that if the 35,000 MW project is completed in five years, PLN will have a peak load of 74,000 and an excess capacity of 21,000 MW. According to regulations, LN would have to pay for the excess capacity to independent (private) power producers—even if the excess electricity supply goes unused.

"The value would reach US$7.62 billion," he said.

Rizal suggests the government to focus on four factors to speed up and optimize the project: expedite land acquisition, speed up transmission procurement, diversify alternative energy sources, and decentralize power plants.

Echoing a similar sentiment, ReforMiner Institute executive director Komaidi Notonegoro said the government should reflect on the 10,000-MW Fast Track program that had not materialized due to land acquisition problems.

"The provision of goods for power plant also takes a long time," he said.

According to the Investment Coordinating Board (BKPM), investment realization in the electricity sector increased in the first semester of this year, with 226 projects entering construction phases with an investment of Rp18.4 trillion.

"That is the biggest realization of investment in the field of infrastructure," BKPM chief Franky Sibarani said.

URSULA FLORENE | ALI HIDAYAT | AMIRULLAH