Drop Tanjung Jati B buyout plan: Legislators<\/p>\n
JAKARTA (JP): Legislators called on the government to cancel
\nplans to buy out the giant Tanjung Jati B power plant in Central
\nJava using loans under the Miyazawa Plan.<\/p>\n
"The (Miyazawa Plan) loan can not be used to finance private
\npower plant projects. The government must cancel plans to secure
\nloans to buy out the Tanjung Jati B plant," Lili Asdjudiredja of
\nthe ruling Golkar party said.<\/p>\n
Rahadi Sayoga, also a Golkar legislator, said the buyout plans
\nreflected the confusion experienced by the government in finding
\na solution to disputes involving PLN and its independent power
\nproducers.<\/p>\n
"I am very concerned about the situation. I don't know which
\nis the real way out for PLN's problems," Rahadi told The Jakarta
\nPost.<\/p>\n
Both legislators were commenting on the government's plan to
\nsecure loans from Japan under the Miyazawa Plan for cash-strapped
\nstate electricity company PT Perusahaan Listrik Negara (PLN) to
\nbuy out the plant.<\/p>\n
The 1330 Megawatt (MW) coal-fired power plant, located in
\nCentral Java, is 80 percent owned by Hopewell Holdings Ltd., of
\nHong Kong with the remaining shares held by PT Impa Energy Co.,
\nowned by Djan Farid.<\/p>\n
Farid is known to have links with the daughter of former
\npresident Soeharto, Siti Hardiyanti Rukmana.<\/p>\n
Speculation is rife that Siti Hardiyanti's involvement was a
\nfactor in the planned buyout.<\/p>\n
Former PLN president Djiteng Marsudi earlier said if the
\nbuyout plan was realized, it would amount to "a betrayal of
\nIndonesians". He noted the funds from the Miyazawa Plan were
\nallocated to help Asian countries improve their battered economy.<\/p>\n
An informed source denied the government asked loans from
\nJapan under the Miyazawa Plan but under the Japanese Special
\nLoan. The soft loan, which has a grace period of 10 years and a
\nmaturity period of 40 years, is aimed at infrastructure projects.<\/p>\n
Coordinating Minister of Development Supervision Hartarto
\nSastrosoenarto and PLN's president Adhi Satriya said the buyout
\nwas one of several options being considered by PLN in its efforts
\nto cut prices of power supplies from independent power producers
\n(IPP).<\/p>\n
PLN has signed power purchase agreements with 27 IPPs from
\nwhich the state company has to buy power at a price between 5.7
\nU.S. cents and 8.6 cents per kilowatt hour (kwh). PLN, however,
\nsells power to the public at about 3 cents per kwh.<\/p>\n
In a related development, Kontan daily reported on Friday
\nthat international auditor Arthur Andersen, who was hired by the
\nMinistry of Finance to audit PLN, estimated that PLN would lose
\nUS$18 billion due to IPP's power plant projects.<\/p>\n
The audit report, submitted to the ministry last month, also
\nsaid PLN lost Rp 16 trillion due to operation inefficiency. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/drop-tanjung-jati-b-buyout-plan-legislators-1447893297",
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