DPD to propose bigger allocations for rural electricity

DPD to propose bigger allocations for rural electricity

Leony Aurora, The Jakarta Post, Jakarta

Observing a big gap in power availability between Java and other
less-developed islands, the Regional Representatives Council
(DPD) will propose a bigger allocation from next year's state
budget to build electricity networks in rural areas.

Chairman of DPD's Ad Hoc Committee II Kasmir Tri Putra said on
Tuesday that to determine the proper allocation, the DPD would
cooperate with the energy ministry to establish a database on
power deficiencies throughout the country.

"We'll request data from (state power firm) PLN's regional
branches when we visit our constituents," said Kasmir after a
meeting with the Minister of Energy and Mineral Resources.

Data the ministry obtained from PLN headquarters was proven to
be inadequate and contained errors, he added. For example,
several districts grouped in one province were actually part of
another province.

"We cannot increase the allocation for this year. However, we
hope to be able to do so for 2006's budget," said Kasmir.

Energy minister Purnomo Yusgiantoro welcomed DPD's support,
saying that the current budget of Rp 1.5 trillion ($156 million)
allocated for the rural electricity program was not nearly enough
to cover demand.

"That can only (build enough plants to) supply 100 megawatts
(MW) of power," said Purnomo.

By comparison, the Java-Bali grid has an installed capacity of
19,516 MW while the other islands have a total capacity of 5,702
MW.

PLN has said that the country must add some 1,500 MW each year
over the next decade to accommodate rising demand.

The rural electricity program is a government efforts to
lift electricity ratio from 55 percent of the population at
present to 95 percent within 20 years. PLN carries out the
program with funds allocated from the state budget.

Government data show that this year, dozens of small power
plants, mostly with a capacity of less than 1 MW, and networks
will be built in rural areas in Java, as well as other islands.

Although the government is currently pushing the use of
natural gas and coal instead of the heavily subsidized oil to
produce energy, Purnomo said that due to the geographical terrain
of the archipelago, most of the planned power plants under the
program would use diesel fuel.

"We cannot avoid using diesel fuel in remote areas," said
Purnomo.

Power plants that utilize renewable resources, such as solar
energy, are considerably more expensive than fuel-fired plants,
while the transportation of gas and coal to rural areas is yet to
be developed.

Oil usage for electricity production, which stands at up to 55
percent at present, will be lowered to between 10 percent and 15
percent by 2020. Gas usage is targeted to rise from 31 percent
this year to 39 percent in 2020, and coal from 11 percent to 38
percent.