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Jakarta Post

PLN launches local-content coal power plants project to stir local biz

  • Ayomi Amindoni
    Ayomi Amindoni

    The Jakarta Post

Jakarta   /   Wed, September 28, 2016   /  09:32 pm
PLN launches local-content coal power plants project to stir local biz An activist lies in front of the Japanese Embassy in Jakarta during a rally on April 1 to protest against a coal-fired power plant project in Batang, Central Java. (ANTARA FOTO/Widodo S. Jusuf)

State-owned power company PLN has launched the national coal-fired power plant (PLTU) program to boost the utilization of local content in the development of small- and medium-sized coal-fired power plants with a total investment of Rp 150 trillion (US$11.58 billion).

The power plants will use components and products made by domestic industries, both from state-owned enterprises (SOEs) and private contractors, and will be specially designed for locally produced low-grade coal. The utilization of local content is targeted to reach over 50 percent.

PLN's director of procurement Supangkat Iwan Santoso said all of the components of the small- and medium-scale power plants could be manufactured in the country, except for the generators and turbines. But even so, that level of local content would be large enough to revive 14 strategic SOEs and 190 private companies.

"It can revive more than 200 state and private companies. Imagine how much contribution the program will make to the economy," he said on the sidelines of the 71st National Electricity Day Conference in Jakarta on Wednesday.

As of now, 201 small-medium coal-fired power plants are listed in the plan, comprising 30 power plants with 100 megawatt (MW) capacity, 37 with 50 MW capacity, 37 with 25 MW capacity and 72 with capacity below 25 MW.

The first series of power plants to be completed are the Madura power plant in Madura, Tarahan power plant in Lampung with a capacity of 2x100 MW, and Boroko power plant in North Sulawesi with a capacity of 2x50 MW. (ags)

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