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Indonesia plans 24% less new electricity investment in 2022
The government has lowered its target for new investment in the electricity sector by 24 percent to $7.55 billion as some 2021 projects have yet to be concluded.
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A worker from state-owned electricity firm PLN tests an electricity meter in Jakarta on July 22, 2020. (JP/Dhoni Setiawan)
T
he government is lowering its target for new investment in the electricity sector this year to US$7.55 billion, 24 percent less than last year’s target of $9.91 billion.
Rida Mulyana, the Energy and Mineral Resources Ministry’s electricity director general, said power plants, transmission infrastructure and other construction projects had been delayed until the end of last year because of the pandemic, leading to a low investment realization in 2021.
“We aim to have 2,949 [megawatts] of additional electricity generation capacity by the end of 2022,” Rida told reporters during a virtual press conference on Tuesday.
Realized investment in the electricity sector dropped 11 percent last year to $6.75 billion as the pandemic hampered construction and pushed back the commercial operational launch of some plants into 2022, ministry data show.
Read also: Pandemic hits investment in electricity infrastructure
Among 15 performance indicators assessed by the ministry, discrepancy from the targets was widest for new power plant capacity realization, with 1,901 MW in capacity added in 2021, which is just 30.7 percent of the targeted 6,187 MW.
The second-biggest shortfall was in electricity distribution network development, with an additional 14,480 kilometers of transmission lines installed, or 33.9 percent of the 46,412 km target.
