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6,500MW power plants, mostly coal, set for delay amid pandemic
"This was a global issue,” said the energy ministry’s electrification director general.
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The new 10MW gas-fired power plant (PLTMG) in Timika, Mimika, Papua, on June 25. The plant is among several built ahead of the 2021 National Games (PON) in Papua. (PLN/PLN)
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he completion of seven big power plants and four power distribution projects have been delayed indefinitely due to the health crisis, causing power sector investment and plans to slow entering the second half.
Seven of the delayed plants are coal-fired – contributing 74 percent of total capacity – but there is also one gas-fired and one hydropower plant, according to Energy and Mineral Resources Ministry data made available to reporters on Aug. 2.
Meanwhile, the delayed power distribution projects comprise substations in South Sulawesi, Aceh and Riau and a transmission line in Banten. All 11 projects were delayed due to international lockdowns that restricted the movement of skilled workers and materials.
“This was a global issue,” said the energy ministry’s electrification director general, Rida Mulyana, on July 30. “Hopefully, once the lockdown is relaxed, and with the new normal, we can accelerate projects in July and August.”
Due to the project delays, power sector investment only reached US$3.97 billion in the first half, which is 33 percent of the year-end target of $11.95 billion.
Realized investment had been above target until April, but began falling under target ever since that month, which was when Indonesia began entering partial lockdown, said the energy ministry’s electrification director, Jisman Hutajulu.
“What’s clear is that $11.95 billion, based on current conditions, we’ll likely be under that,” he told reporters at an online briefing.
