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Jakarta Post

Indonesia stumbles on mega power project

  • Fedina S. Sundaryani

    The Jakarta Post

Jakarta   /   Mon, May 16 2016   /  08:39 am

The government’s plan to develop an additional 35,000 megawatts (MW) of electricity capacity by 2019 has hit a couple of speed bumps since it was announced last year, prompting President Joko “Jokowi” Widodo to order a review of the feasibility of the ambitious project.

In mid-2015, President Jokowi announced a target of installing 35,000 MW of capacity before 2019, as electricity demand is predicted to increase by 7,000 MW per year.

The latest data from the Energy and Mineral Resources Ministry, however, shows that with only three years left to complete the program, only 10,942 MW, or 30 percent of the target, have secured buyers and completed power-purchase agreements, while only 3,742 MW of capacity, or 10.5 percent, has entered the construction stage.

The sluggish progress has allegedly led to uncertainty from investors about whether the megaproject can be ...