Power projects may continue this year, Dorodjatun says<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government would allow the independent power producers
\n(IPP) to resume, their projects this year, ones which were put on
\nhold in the wake of the economic crisis in 1997, a senior
\nminister said Wednesday.<\/p>\n
Coordinating Minister for the Economy Dorodjatun Kuntjoro-
\nJakti said the resumption of the electricity projects was aimed
\nat preventing a power crisis which was looming over Java island,
\nthe center of politics and the economy of the country.<\/p>\n
\"A power crisis in Java would materialize should the projects
\nbe discontinued,\" Dorodjatun said in a hearing with the House of
\nRepresentatives's Commission VIII for energy and mineral
\nresources, environment, science and technology as quoted by
\nAntara as saying.<\/p>\n
According to Dorodjatun, there are 28 regions outside of Java
\nwhich have been experiencing rotating power blackouts. Java might
\ngo through a similar experience unless the government allows the
\nresumption of the power projects.<\/p>\n
In addition, Dorodjatun said that the resumption of
\nelectricity projects was urgent to prepare for the coming general
\nelection in 2004.<\/p>\n
Prior to the crisis, the state electricity company signed
\npower purchase agreements (PPA) with 27 IPPs, which paved the way
\nfor the latter to develop power projects in the country.<\/p>\n
The government put on hold many of the projects in late 1997
\nas part of the retrenchment program to cope with the economic
\ncrisis.<\/p>\n
The postponement was first lauded by many people who
\nconsidered it a good response to the reform movement, given the
\nfact that all the projects involved former President Soeharto's
\nfamilies and friends who partnered with international firms.<\/p>\n
But, the postponement later triggered a string of disputes
\nwith the IPPs and arbitration proceedings, resulting in financial
\nlosses for the government.<\/p>\n
Dorodjatun said the government might give a greater role to
\nprivate sector firms in delivering electricity.<\/p>\n
\"In many countries, electricity is managed by state-owned
\ncompanies or the government. But now, electricity should be in
\nthe hands of the private sector,\" he said.<\/p>\n
PLN did not have any money to build its power plants, so, it
\nwas better to allow private firms to build the plants, he
\nasserted.<\/p>\n
Meanwhile, PLN's president Eddie Wibowo urged on Wednesday the
\ngovernment to approve the company's plan to get an US$800 million
\nloan from European countries for its projects to cope with the
\npower crisis in the 28 regions.<\/p>\n
\"We expect the Ministry of Finance could immediately approve
\nour proposal,\" Eddie said after a Cabinet meeting on electricity
\nled by Vice President Hamzah Haz.<\/p>\n
He said that PLN has been offered loans by creditors from
\ncountries like Denmark and Belgium, but the prospective creditors
\nasked for the government's approval for the loans.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/power-projects-may-continue-this-year-dorodjatun-says-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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