Adequately funded power projects set to continue
BOGOR (JP): State Minister of National Development Planning Ginandjar Kartasasmita indicated yesterday that power projects which had secured adequate funding would continue.
Ginandjar said that such power projects were not affected by the rescheduling measure announced by the government earlier this week.
"Those which have not yet made financial closing are either postponed or reviewed," he told reporters when visiting PT Pouwels Transformer Asia's production facilities in Cileungsi, near here.
Projects which were postponed or reviewed were part of those which had already signed purchase agreements with the government, he said.
The minister said projects which fell under the "review category" still had a chance to go ahead as long as their investors had sufficient equity to finance the projects.
Minister of Finance Mar'ie Muhammad announced earlier this week the rescheduling or review of Rp 105 trillion (US$35.6 billion) worth of government or state-related projects as part of measures to minimize the impact of the rupiah's sharp depreciation against the U.S dollar.
As part of the retrenchment, the government postponed 14 power projects valued at $5 billion and reviewed nine others worth $4.9 billion. They are part of 28 power projects which have signed power purchase agreements with state-owned electricity company PLN.
The government, however, did not name the power projects affected by the cutback measure.
Six of the 28 power projects have secured a loan commitment from local and overseas banks.
The first project is the coal-fired Paiton I power plant in East Java, 40 percent owned by the Netherlands' MEC Indonesia BV, Japan's Paiton Power Inv. 32.5 percent, the Netherlands' Capital Ind. Power 6.25 percent and PT Batu Hitam Perkasa 15 percent. Batu Hitam Perkasa is controlled by Hashim Djojohadikusumo.
The second project is the coal-fired Tanjung Jati B plant in Central Java, 80 percent owned by Hong Kong's Hopewell Ltd and PT Impa 20 percent.
The third project is the coal-fired Paiton II plant in East Java, 50 percent owned by Germany's Jawa Power Hold, Britain's Ergon Energy 35 percent and PT Bumipertiwi Tatapradipta 15 percent. Bumipertiwi is controlled by President Soeharto's second son Bambang.
The fourth project is the gas-fired Sengkang plant in South Sulawesi, owned by Australia's Energy Equity Asia Power Ltd and PT Triharsa Sarana Jaya Purnama.
The fifth project is the coal-fired Sibolga A plant in North Sumatra, owned by PT Transmega Ekacipta Corporation and PT Primarindo Finance Corporation.
Transmega Ekacipta is owned by businessman Judiono Tosin while Primarindo is owned by Ibrahim Risjad.
The sixth project is the coal-fired Amurang plant in North Sulawesi, owned by Transmega Ekacipta Corporation and PT Primarindo Finance Corporation.
The other 22 private power projects have not made "financial closing".
The projects include the Palembang power plant in Palembang, South Sumatra, the Cilegon plant in West Java, the Pasuruan plant in East Java, the Pare-Pare plant in South Sulawesi, the Asahan plant in North Sumatra, the Cilacap plant in Central Java, the Tanjung Jati A plant in Central Java and the Serang plant in West Java.
Other projects which have signed power purchase agreements but are yet to make financial closing include geothermal plants in Salak, Patuha, Karaha, Kamojang, Wayang Windu, Cibuni, Drajat, all in West Java; in Sarulla, North Sumatra; Dieng, Central Java and Bedugul, Bali.
Ginandjar said the retrenchment measure in the power sector was decided by a special team led by Rahadi Ramelan with members including Director General for State-Owned Companies Bacellius Ruru.
The team, supervised by the Coordinating Minister for Economy, Finance and Development, was assisted by a technical team consisting of officials of related departments, Ginandjar said. (jsk)