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35,000 MW program key to higher growth: Official
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President Joko “Jokowi” Widodo (right) with Energy and Mineral Resources Minister Sudirman Said (center) and Public Works and Public Housing Minister Basuki Hadimuljono (left) inspects a solar panel in Daruba village, Morotai Island, North Maluku on April 5. (ANTARA FOTO/Yudhi Mahatma)
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nationwide program to add 35,000 megawatts (MW) in electricity generating capacity is one of the priorities for President Joko “Jokowi” Widodo's administration due to its importance for spurring economic growth, Presidential Chief of Staff Teten Masduki has said.
Developing power plants along with the supporting infrastructure would bring more investors to Indonesia. At the same time, the projects would boost electrification in the country, he said.
"It is the right time for us. While the global economy is still in a sluggish condition, we must prepare our competitiveness to win the coming competition when the global economy ultimately recovers," Teten said at the State Palace on Thursday.
He admitted that achieving the electricity capacity target of an additional 35,000 MW by 2019 was no easy task.
State-owned power firm PLN stated that as of April 2016 it had only realized 2.4 MW of the 42,000 MW in total new capacity-- consisting of 35,000 MW plus 7,000 MW in additional capacity from power plants under the Fast Track Project (FTP) II.
However, Teten said new policies on business deregulations would prompt investors to develop power plants in the country at a more rapid pace.
Aside of infrastructure and electricity projects, the government announced deregulations to simplify investment permit applications and business procedures in general.
He added the power plant program would increase the electrification ratio from currently 88 percent to 97 percent by 2019. "We hope this project can be completed on time to improve national economic growth." (ags)
