Supporting 52 Smelters in 2024, Strategies are Prepared to Meet Electricity Need

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 047.Pers/04/SJI/2020

Date: 28 January 2020

Supporting 52 Smelters in 2024, Strategies are Prepared to Meet Electricity Need

Ministry of Energy and Mineral Resources (EMR) has prepared a number of strategies for supplying electricity to meet the need of the processing and refining (smelter) industry in 2022. This way, it is expected the smelter industry in Indonesia will be more competitive.

"We must be able to meet the electricity need of the smelter industry in 2024 of 4,798 Mega Watt," explained Minister of EMR, Arifin Tasrif, when he reported the EMR sector's five-year work program in front of members of the House of Representatives, Monday (27/1).

Arifin further asserted the government's consistency in increasing the mineral added value through the construction of smelter industry in the country, as evidenced by the plan to construct 52 smelters within five years, namely 4 copper, iron, lead, and zinc smelters, 29 nickel smelters, 9 bauxite smelters, and 2 manganese smelters.

To support these 52 smelters, the electricity need is projected at 4,798 MW spread out in several areas, among others, Bengkulu (5 MW), Banten (68.5 MW), West Java (39 MW), East Java (821.9 MW), West Nusa Tenggara (300 MW), East Nusa Tenggara (20 MW), Riau Islands (45 MW), West Kalimantan (499 MW), South Kalimantan (10 MW), Central Sulawesi (959 MW), Southeast Sulawesi (1,053 MW), Maluku and North Maluku (941 MW).

To meet the electricity need, the Ministry of EMR has prepared three strategic policies, namely electricity is supplied by the State Electricity Utility (PLN); electricity is supplied by smelter developer, and a collaboration between smelter developer and non-PLN.

Electricity Consumption

Arifin himself has set a target to strengthen the economic security to ensure quality growth through the increase of per capita electricity consumption. "This is the first, national priority program of Ministry of EMR," stated Arifin.

Arifin admitted Indonesia's per capita electricity consumption was far below that of other countries in Southeast Asia (ASEAN). For this reason, the government has set a target of 1,408 kilowatt hour (kWh) per capita electricity consumption in 2024.

"Electricity consumption will increase (to) 1,408 kWh per capita because compared to other ASEAN countries that are more advanced, we're a bit behind. Thus, we need to carry out programs to balance the electricity supply in remote areas, especially the eastern regions of Indonesia," he explained.

According to data, the electricity consumption in 2019 was 1,084 kWh per capita out of target 1,200 kWh per capita. Meanwhile, the electricity consumption target for 2020 is 1,142 kWh per capita.

The target will increase to 1,203 kWh per capita in 2021, 1,208 kWh per capita in 2022, 1,268 kWh per capita in 2022, 1,336 kWh per capita in 2023, and finally 1,408 kWh per capita in 2024.

In 2024, the target of electrification ratio is 100 percent, while generation capacity will increase by 5.7 gigawatt (GW). (IY)

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