TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Solar plant projects up for grabs again after failed bids
Cooperative cooperation: Energy and Mineral Resources Minister Jero Wacik (right) and Cooperatives and Small and Medium Enterprises Minister Syariefuddin Hasan sign a memorandum of understanding (MoU) about cooperatives empowerment coordination to develop new and renewable energy at the Energy and Mineral Resources Ministry office in Jakarta on Tuesday
Change Size
Cooperative cooperation: Energy and Mineral Resources Minister Jero Wacik (right) and Cooperatives and Small and Medium Enterprises Minister Syariefuddin Hasan sign a memorandum of understanding (MoU) about cooperatives empowerment coordination to develop new and renewable energy at the Energy and Mineral Resources Ministry office in Jakarta on Tuesday. Through the synergy of the two ministries, the development of the new and renewable energy is expected to run more smoothly. (JP/Jerry Adiguna) (right) and Cooperatives and Small and Medium Enterprises Minister Syariefuddin Hasan sign a memorandum of understanding (MoU) about cooperatives empowerment coordination to develop new and renewable energy at the Energy and Mineral Resources Ministry office in Jakarta on Tuesday. Through the synergy of the two ministries, the development of the new and renewable energy is expected to run more smoothly. (JP/Jerry Adiguna)
C
span class="inline inline-none">Cooperative cooperation: Energy and Mineral Resources Minister Jero Wacik (right) and Cooperatives and Small and Medium Enterprises Minister Syariefuddin Hasan sign a memorandum of understanding (MoU) about cooperatives empowerment coordination to develop new and renewable energy at the Energy and Mineral Resources Ministry office in Jakarta on Tuesday. Through the synergy of the two ministries, the development of the new and renewable energy is expected to run more smoothly. (JP/Jerry Adiguna)
The Energy and Mineral Resources Ministry will repeat the tender process for solar plant development projects on the country's outermost islands.
'The repeat tenders are due to administrative matters. Bidders failed to submit proper data in the previous tenders,' said Alihuddin Sitompul, the director for diverse new energy at the ministry's renewable energy directorate general, on Tuesday.
The do-over of the tenders for projects that cover 25 outer islands in the country would be completed by the middle of July and winners of the tenders would be expected to complete the projects by December.
The solar plant projects are part of government efforts to increase the electrification ratio in the country, including in the almost abandoned outer islands.
However, renewable energy director general Rida Mulyana said poor infrastructure to reach the location had also become a hurdle for investors to work on the projects.
Total funding of Rp 660 billion (US$58 million) was allocated to the development of renewable resources to generate electricity this year. The total amount comprises Rp 510 billion for solar power plant projects and Rp 150 billion for mini-hydro power plants.
The mini-hydro plants will be built at 21 locations while solar power plants will cover 133 locations ' 31 locations in the outer islands, 27 in border areas and 75 in isolated areas.
The government has been calling for increased development of power plants driven by renewable energy in an attempt to reduce fossil-fuel consumption. Indonesia, a former member of the Organization of Petroleum Exporting Countries (OPEC), has seen declining domestic oil production, which has forced the country to import more oil amid rising demand and volatile prices that are driving the country's trade deficit.
On Tuesday, the Energy and Mineral Resources Ministry sealed an agreement with the Small and Medium Enterprises Ministry regarding the use of cooperatives to encourage the development of renewable energy.
Under the deal, the ministries agreed to assist the country's 203,000 cooperatives to take part in the development of small-scale electric power projects to provide electricity to villages.
The most applicable power generation projects would be mini-hydro, as most villages in Indonesia are located near water sources, according to Energy and Mineral Resources Minister Jero Wacik.
'For villages that are not passed by rivers, we can develop solar power plants,' Jero said. 'We are targeting as many of the cooperatives as possible to take part in renewable energy development.'
Small and Medium Enterprises Minister Syariefuddin Hasan called for further cooperation with the energy sector. He suggested cooperatives participate in the operation of small-old oil wells with low production and that are located near the cooperatives' areas.
'Small-old wells in the provinces are no longer feasible to be managed by big companies. If [the cooperatives] can manage the wells, more small and medium enterprises will be able to contribute at the national level, currently seeing a declining [trend] in oil lifting,' he added.
