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Jakarta Post

Dumai refinery to cut costs by 25% after getting PLN electricity supply

Stefanno Reinard Sulaiman (The Jakarta Post)
Jakarta
Fri, February 22, 2019

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Dumai refinery to cut costs by 25% after getting PLN electricity supply Pertamina's Dumai refinery in Riau. (Courtesy of/www.pertamina.com)

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tate-owned energy holding company Pertamina hopes to cut the operational costs of its Dumai refinery in Riau (RU II) with a sales and purchase agreement (PJBL) between Pertamina and state-owned electricity company PLN that took effect on Thursday.

Under the agreement, RU II would get its electricity from PLN. Until now, RU II has been getting its electricity from fuel-powered generators.

The memorandum of understanding (MoU) for the PJBL was inked on Aug. 2, 2018 in Jakarta by Pertamina’s refinery director Budi Santoso Syarif and PLN corporate planning director Syofvi Felienty Roekman.

RU II general manager Nandang Kurnaedi said another benefit of the agreement was the refinery's elimination of the need for Solar-branded biodiesel to generate electricity. “The diesel fuel could be used for more productive activities,” he said in a press statement on Friday.

Under the agreement, Pertamina could cut the operational costs of RU II, which currently meets 20 percent of the total demand for fuel in the country, by 25 percent to Rp 1.6 billion per month by ceasing its use of generators.

“PLN has prepared a special measure to provide a stable electricity supply from two main substations in Pelintung and Purnama,” said PLN Riau and Riau Islands senior manager Busran La Bintang . (bbn)

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