Power plant projects to resume: Official<\/p>\n
Moch N. Kurniawan, The Jakarta Post, Jakarta<\/p>\n
The government is considering allowing up to seven independent
\npower producers (IPPs) to resume the development of power plants
\nwhich were halted in the wake of the country's 1997 financial
\ncrisis.<\/p>\n
Director general for electricity and energy utilization Luluk
\nSumiarso said it was considering the move to help meet the
\ngrowing power demand both now and in the future.<\/p>\n
He declined to name the IPPs or specify where the power plants
\nwould be located.<\/p>\n
\"We can't disclose it until the presidential decree which
\nsuspended and reviewed the development of many (infrastructure)
\nprojects has been revoked,\" he told reporters on the sidelines of
\na hearing session with the House of Representatives commission
\nVIII on science, technology and the environment.<\/p>\n
The government allowed 27 IPPs to enter the country's power
\ngeneration sector under a power purchase agreement (PPA) contract
\nwith state-owned electricity company PLN in the early 1990s
\nbecause PLN was unable to build sufficient generating units to
\nmeet the increasing power demand in the country.<\/p>\n
But the government suspended and reviewed most of the power
\nprojects during the financial crisis in an effort to help ease
\npressure on the local currency and state finances.<\/p>\n
The government had also asked PLN to renegotiate the
\ncontracts, seen as unfavorable because of the relatively high
\nprice PLN must pay for the power produced by the IPPs.<\/p>\n
The suspension of the power projects were made based on the
\npresidential decree No. 39\/1997.<\/p>\n
The government said last week it planned to revoke the decree
\nto provide legal certainty for investors to continue the power
\nprojects.<\/p>\n
The plan to continue the projects was also part of government
\nefforts to cope with an imminent power crisis.<\/p>\n
The government has repeatedly said Java and Bali islands are
\npredicted to undergo a black out in 2004 and that 28 other areas
\noutside the two islands could run out of power if there are no
\nnew power plant developments.<\/p>\n
Separately, PLN president Eddie Widiono said that one the IPPs
\nto be allowed to resume the power development project was the
\nKaraha Bodas Co., which owns the Karaha geothermal power project
\nin West Java.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/power-plant-projects-to-resume-official-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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