PLN signs 16 contracts worth Rp 21.1 trillion
Viriya P. Singgih
The Jakarta Post
State-owned electricity firm PLN signed on Friday agreements for 16 projects under the 35,000-megawatt electricity program worth a total investment of Rp 21.1 trillion (US$1.58 billion).
Of the total investment, Rp 13 trillion will be used on the development of various power plants across the country, while Rp 6 trillion is the cost of a five-year service agreement and Rp 2.1 trillion will be used to develop transmission circuits.
Of the projects, PLN signed engineering, procurement and construction (EPC) contracts for four power plants with a total capacity of 927.5 MW, including the Muara Tawar combined-cycle power plant (PLTGU) in Bekasi, West Java, with a capacity of 650 MW.
The company also signed letters of intent (LoI) for six power plants with a total capacity of 898 MW, including ones in Papua.
Moreover, PLN signed procurement contracts for the development of 928 kilometers of transmission circuits with a capacity of 500 kilovolts along Java’s northern coast.
“Many of these projects are located in the country’s eastern part. We want to ensure development in that region as electricity there will have a positive impact on the people,” PLN president director Sofyan Basir said on Friday at his office in Jakarta.
The government plans to procure 35,000 MW of electricity by the end of President Joko “Jokowi” Widodo’s term in 2019, aiming to gradually increase the national electrification ratio to 97 percent from the 91.16 percent last year. (bbn)
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