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.

Jakarta Post

EDITORIAL: Making sense of PLN's business

  • EDITORIAL

    The Jakarta Post

PREMIUM
Jakarta   /   Mon, April 17, 2017   /  08:28 am
EDITORIAL: Making sense of PLN's business PLN’s latest electricity procurement business plan (RUPTL), a guideline for the company’s operations until 2026, has highlighted the company’s focus on expanding electricity capacity in Sumatra, Kalimantan and Sulawesi. (JP/Dhoni Setiawan)

State-owned power company PLN has shelved the construction of several power plants with a combined capacity of about 9 gigawatts (GW). Construction of the projects will not be considered until 2020 as the company forecasts that feeble economic growth is set to drastically reduce demand for electricity. The impacted projects, according to PLN officials, are mostly located in Java — the country’s center of industry, which is keeping its potential electricity crisis at bay and enjoying a 30 percent surplus in electricity capacity. PLN has argued that it will suffer huge financial losses should it be forced to go ahead with the projects, saying that the electricity will not be able to be absorbed by customers but PLN will still have to pay for its production. The postponement will further diminish the government’s ambitious policy to complete the construction of 35 GW...