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Discontinuation of PLTU Jawa 5 Bidding MayDerail National Project

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Editor

13 May 2016 07:50 WIB

TEMPO/Tony Hartawan

TEMPO.CO, Jakarta - The discontinuation of bidding of coal-fired power plant (PLTU) Jawa 5 with a capacity of 2x1,000 megawatt (MW) in Serang Banten could implicate the 35,000 MW project.

Energy and Mineral Resources Minister Sudirman Said stated that the discontinuation of the bidding process without explanation from the state-owned electricity company (PLN) sends a bad signal to investors.

Despite not yet receiving any official report from the PLN, he considered that the reasons behind the discontinuation must be disclosed in details. “It must be clarified to the market. Any discontinuation could happen but the reason must be a fundamental one,” Sudirman told reporters at the ministry’s building on Thursday.

The uncertainties in the discontinuation could hamper the 35,000 MW megaproject launched by the government over the next five years, according to him.

Sudirman has called on the PLN to keep consistent with the government policies to maintain market trust. “What can the market trust in? One of them is policy consistency,” he said.

The discontinuation of the bidding process was announced by the PLN through its independent consultant PT Ernst and Young Indonesia to the bidders on April 18, 2016.

The PLN has yet to make any statement on the issue, according to Bisnis.com.

BISNIS.COM



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