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Jakarta Post

Indonesia slightly lowers target for investment in electricity

  • Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Fri, January 11, 2019   /   01:18 pm
Indonesia slightly lowers target for investment in electricity President Joko "Jokowi (third left) and a number of ministers and officials push a knob to launch the operation of a wind farm in Mattirotasi village, Sidrap regency, South Sulawesi on July 2, 2018. (Courtesy of /Presidential Palace)

The government is lowering its investment target for the electricity sector this year to US$12.04 billion, 1.3 percent less than last year’s target of $12.2 billion, after taking into account a recent slowdown in electricity consumption.

Only $11.28 billion was invested in 2018, but that was 24.5 percent more than the $9.06 billion invested in 2017.

The Energy and Mineral Resources Ministry’s electricity program supervision director, Jisman P. Hutajulu, said on Thursday that most of the investment would be used for the construction of power plants.

“We aim to have an additional electricity generation capacity of 3,976 megawatts [MW] by the end of 2019,” he said recently, adding that the company also needed to invest in the construction of transmission facilities and substations.

The ministry aims to have a total installed electricity generation capacity of 66,500 MW by the end of 2019, up from the current 62,500 MW.

The ministry also expects people’s electricity consumption to increase by 12.7 percent to 1,200 kWh per capita by the end of 2019. It plans to electrify all villages across the country by setting the target of 99.38 percent electrification.

This year, the government also wants to lower the contribution of fossil fuels to power grid to only 4.03 percent or 0.97 basis points lower than in 2018. (bbn)