Accessible and Affordable Energy is Top Priority despite Pandemic, Says Energy Minister

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 354.Pers/04/SJI/2019

Date: 30 December 2020

Accessible and Affordable Energy is Top Priority despite Pandemic, Says Energy Minister

"The government has given a top priority to accessible and affordable energy although Indonesia is adapting to the new normal because of the Covid-19 pandemic," Minister of Energy and Mineral Resources (EMR) Arifin Tasrif has said when inspecting coal-fired power plant (PLTU) Suralaya in Suralaya Village, Cilegon City, Banten Province, on Wednesday (30/12).

To reach the target of accessible and affordable energy, continued Arifin, the government has accelerated energy distribution process to all layers of the society. The result can be seen in the realization of electrification ratio of 99.15% in the third quarter of 2020.

In the visit, the Minister of EMR has made sure that electricity supply to Java and Bali Islands for Christmas 2020 and ahead of New Year 2021 is safe, while backup supply is optimum.

According to Arifin, although demand level during Christmas and New Year has been projected to be lower than in previous years as an impact of limited economic activities, all power plants must be ready to generate reliable and safe electricity supply.

"Through PLN, the government is always ready to maintain electricity supply and inspect electrical installation at places of worship and other public facilities in the middle of difficulties and limitations due to the pandemic," he explained.

Arifin also requested all managers and field workers alike to observe the health protocol closely.

"Currently, the Covid-19 is spreading very fast. Therefore, please observe the health protocol closely. Remain vigilant, and never get tired of carrying out the established procedure," said Arifin.

Moving towards Clean Energy Power Plants

Deputy President Director of PT PLN, Darmawan Prasodjo, said that PLTU Suralaya is more competitive than Independent Power Producer (IPP) plants. Based on an internal calculation by Indonesia Power, the electricity production cost (BPP) of PLTU Suralaya is cheaper.

"The total BPP, consisting of fixed and variable costs, of Units 1 to 7 is around Rp530.1 per kWh. Meanwhile, the BPP of IPP plants is over Rp800 per kWh on average," said Darmawan.

PLN has set a target to implement biomass co-firing at PLTU Suralaya to accelerate the use of new, renewable energy. "In terms of environmental sustainability, PLTU Suralaya has shown excellent performance, too. This plant has several times received the Gold PROPER award," Darmawan said. For the record, a PROPER award is given by Indonesian Ministry of Environment and Forestry to appreciate companies that conform to environmental management regulations.

Responding to Darmawan, Arifin said that the effort made by PLN is a positive step in the world of international relations.

"It is part of world's commitment to reducing greenhouse gas emission and CO2. If we don't fulfill this commitment, we'll be cornered in the international world," Arifin emphasized.

According to Arifin, large countries such as China and India, formerly known as heavy users of coal, are shifting to new, renewable energy. "Developed countries have shifted the funding for coal-fired power plants. Coal use is put to an end. China, which had greatly depended on coal, has started to change," he said.

Arifin went on to say that the Ministry of EMR has anticipated this trend by introducing a larger portion of renewables into the national energy mix. "Current advances in technology have shown that new, renewable energy, especially solar energy, has become more competitive. The transition to new, renewable energy is the appropriate way," said Arifin.

However, Arifin said that coal use will not necessarily disappear from Indonesia national energy mix. "Coal is our backup when other fossil energy has depleted. In the future, we'll still use coal, but only at mine mount. So, our energy planning needs to see other aspects," Arifin concluded.

PLTU Suralaya supplies 12%-14% of the Java-Bali electric grid. With 500kV electrical transmission, the power plant consumes about 35,000 tonnes of coal supplied by six coal miners, namely PT Adaro Indonesia, PT Artha Daya Coalindo, PT Berau Coal, PT Bukit Asam, PT Oktasan Baruna, and PT PLN Batubara. Managed by PT Indonesia Power, the coal-fired power plant has a capacity of 3,400 Mega Watt (MW).

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

Agung Pribadi (081122135)

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