The 35,000 MW Program is Progressing amid Covid-19

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 231.Pers/04/SJI/2020

Date: 30 July 2020

The 35,000 MW Program is Progressing amid Covid-19

Construction of electricity infrastructure, especially for the 35,000 Megawatt (MW) program, is progressing amid the Corona Virus Disease 2019 (Covid-19) pandemic. Until June 2020, 200 power plants with a total capacity of 8,187 MW have entered Commercial Operation Date (COD) and are connected to the national grid.

The wattage has increased installed capacity to a total of 70.9 GW until May 2020, up by 1.2 GW compared to 2019.

"Of 35.53 GW, plants that have entered COD or started operation are approximately 200 units, making up 8.2 GW or 23%. Additionally, 98 plants contributing to 19.25 GW or 54% are in construction phase," explained Director General of Electricity Rida Mulyana on Thursday (30/7).

Rida went on to explain there are 45 power plant units or 6.5 GW (19%) whose contract are signed but construction are yet to start. Meanwhile, another 54 units or 1.563 GW are still in the procurement and planning phase.

"This is at PLN. Because now demand is in decline, the COD schedule in PLN's RUPTL (Electricity Supply Business Plan) will be shifted to reduce the burden on PLN's operation," he added.

Rida said in order to increase electricity demand, the government has urged PLN to focus on transmission and distribution too, not only on power plant construction. As publicly known, the 35,000 MW program consists of generation, transmission, and substations for distribution.

"From the government side, we've asked, we've requested PLN to slightly shift its focus, no longer on the generation side of the 35,000 MW program. We've urged PLN not to focus on generation, but instead on transmission and distribution, so that more electricity will be bought," Rida stressed.

Besides increasing installed capacity, the government has continued to increase equal access to electricity across Indonesia. Until the first semester of 2020, the national electrification ratio was 99.09%, while the National Electrified Villages Ratio was 99.51%. The government has set up a program to provide electricity to 433 non-electrified villages through grid expansion, mini-grid development, and the electricity tube program.

On this occasion, Rida also presented the investment realization in the electricity subsector. Until June 2020, electricity investment reached USD 3.97 billion out of the 2020 target of USD 11.95 billion. The COVID-19 pandemic has also left its impacts on electricity investment, especially due to the restriction for foreign workers and imported equipment/components from entering Indonesia, causing delays to construction work.

Economic Stimulus in Electricity Subsector

Besides presenting the performance achieved by the electricity subsector, Director General of Electricity also detailed the government's efforts in assisting communities impacted by the Covid-19 pandemic. The Director General said the Ministry of EMR through DG Electricity has instructed PT PLN (Persero) to give discounted tariffs to Household, Business, and Industry customers as part of the economic stimulus.

"I need to remind you that the assistance is temporary, as a manifestation of the state's presence especially for people most affected by the Covid-19 pandemic," stressed Rida

The electricity relief includes, among others, a 100% discount for households subscribing to 450 VA (R1/TR 450 VA) from April to September 2020, a 50% discount for households subscribing to subsidized 900 VA (R1/TR 900 VA), and a 100% discount for small businesses subscribing to 450 VA (B1/450 VA) and small industries subscribing to 450 VA (I1/450 VA) from May to October 2020.

"The government is attending closely to the impacts of the Covid-19 on our lives. The point is, we live with the Covid-19 and its effects; the government is trying to mitigate the risks. The government is making calculation. For those who are most affected and affected economically, the state will be present," Rida concluded.

Most recently, the government has given electricity relief in the forms of exemption from minimum billing and from minimum charge or abonement. Exemption from minimum billing is given to Social, Business, and Industry customers subscribing to 1,300 VA and above as well as special services customers. Meanwhile, exemption from minimum charge or abonement is given to Social group customers subscribing to 220 VA, 450 VA, and 900 VA as well as Business and Industry group customers subscribing to 900 VA. The bill relief applies for July-December 2020. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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