Govt Involves Private Sector in Accelerating 3T Electrification

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 061.Pers/04/SJI/2020

Date: 6 February 2020

Govt Involves Private Sector in Accelerating 3T Electrification

Ministry of Energy and Mineral Resources (EMR) opens the opportunity for the private sector to develop power plants and transmission networks in order to accelerate 100% electrification ratio and to reduce the economic gap in 3T (Outermost, Frontier, and Less Developed) regions.

Advisor to Minister of EMR for Acceleration of Infrastructure Development and Investment, Triharyo Soesilo, said South America and Africa investors were deemed to have good capability in providing electricity for less developed regions.

"The Minister (of EMR) has directed that investors be encouraged. It turns out that there are many investors in the world who can provide electricity for less developed regions. From South America, Africa--there are many investors," Triharyo explained at the office of Directorate General of Electricity in Jakarta, Thursday (6/2).

Involvement of private investors, added Triharyo, cannot be denied due to the huge investment to develop electricity infrastructure. Based on current calculation, total investment needed to realize 100% electrification ratio is about Rp10.7 trillion.

Triharyo further explained the electricity generation for Eastern Indonesia will use village funds managed by Village-Owned Enterprises (BUMDes). The mechanism allowed is collaboration between BUMDes and Independent Power Producer (IPP).

In line with Triharyo, Director General of Electricity, Rida Mulyana, confirms that involvement of private sector will improve the financial condition of the State Electricity Utility, PLN, that currently is focusing on the completion of the 35,000 MW Program. Rida hopes PLN will open the opportunity to collaborate with the private sector in order to accelerate the 100 percent electrification ratio.

"It'll need Rp11 trilion just for 2020, whereas in fact PLN can only provide Rp2.1 trilion. That's why we'll open collaboration with the private sector. 98.6 percent, the remaining is indeed 3T regions. And that includes small islands," said Rida at a hearing with members of Commission VII of House of Representatives, yesterday (5/2). (IY)

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

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