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PLN striving for higher sales after poor 2015

State-owned power firm PLN has set a high sales target this year, despite the company reporting lackluster growth last year

Raras Cahyafitri (The Jakarta Post)
Jakarta
Wed, January 13, 2016

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PLN striving for higher sales after poor 2015

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tate-owned power firm PLN has set a high sales target this year, despite the company reporting lackluster growth last year.

The company'€™s head of marketing, Benny Marbun, said the company was aiming for sales growth of 6 percent in 2016, a relatively high target after 2015'€™s performance.

Figures from the company show that electricity sales grew only 2.1 percent in 2015 to 200.6 terrawatt hours (TWh) from the 196.42 TWh sold in 2014.

Benny pointed out that the sluggish electricity sales in 2015 were partly caused by slowing consumption by the industrial sector, which was affected by the country'€™s weak economic growth. Industrial-sector power consumption was 4.31 percent lower in 2015 compared to 2014.

'€œHowever, we see a better trend of consumption in the industrial sector, particularly large-scale players such as cement, steel and petrochemicals. They are the driver for development projects and therefore we are expecting good signals for Indonesia'€™s economic growth,'€ Benny said.

He also cited better trends in electricity consumption by the business sector, which grew by 6.5 percent in 2015. That, however, compares with 11.7 percent growth in 2014.

As of the end of 2015, the country had 55,523 megawatts (MW) of electricity capacity. Of the total, 2,458 MW was new capacity added to the national system in 2015.

The electrification ratio was 88 percent as of the end of 2015. However, there are a number of areas that recorded much lower ratios compared to the nationwide figure. Sumatra is one region in the spotlight following frequent blackouts.

PLN regional business director for Sumatra Amir Rosidin said the electricity supply in the region had already improved. According to Amir, Sumatra now has sufficient electricity supply but the reserve margin remains at 15 percent, lower than the 30 percent that is considered safe enough to prevent blackouts caused by disruption in major power plants.

'€œWe are expecting the completion of more power plant projects so that we will have greater capacity. We are aiming to achieve a reserve margin of 30 percent by 2018,'€ Amir said.

The additional capacity is needed because, as forecast by Amir, Sumatra area is likely to see electricity sales growth of around 8 percent this year.

Under the plan, an additional 1,290 MW will come online from new power plants in Sumatra this year, consisting of 635 MW in northern Sumatra and 655 MW in the southern part.

In 2015, Sumatra received additional capacity of 1,340 MW, consisting of the Keramasan and Arun gas turbine power plants, and the coal-fired Pangkalan Susu units 1 and 2, Sumsel V, Banjar Sari, Keban Agung and Sebalang unit 2.

As part of efforts to meet power demand in the future and support economic growth, the government has embarked on a program to generate an additional 35,000 MW by 2019. A number of projects are currently being planned and bids have been opened to attract investors willing to build the required power plants.

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