Fri, 10 Dec 2010

TEMPO Interactive, Jakarta:Emy Perdanahari, the Electricity Program director from the Energy and Mineral Resources Ministry, said it requires at least US$ 11,4 billion per year to develop electricity infrastructure in Indonesia. Until 2029, she said, the funds will be needed to build power generators, transmission networks, main transformers, and a national distribution network.

All this is needed because based on the government’s calculation, more electricity supply is needed until 2029 as demand increases at a rate of 9.5 percent per year. “Meanwhile, the electrification ratio at 66 percent now is low,” Emy said yesterday.

With the increasing need for electricity, an additional capacity of 7.800 megawatt per year minimum is required. Overall until 2029, based on the National Electricity General Plan, US$ 227.122 billion in investment funding is needed.

This consists of the cost for the power generators (US$ 200,824 billion), the transmission network and main transformer (US$ 15,02 billion), and distribution network (US$ 11,27 billion). For the long term, the funds required for the next 20 years is estimated to be around Rp 2.000 trillion.

Unfortunately, the electricity demand and the capacity to invest is still skewed. The state-owned electricity company PT PLN can only to invest 20 percent of the required funding. Moreover, the budget allocated by the government for electricity infrastructure, a maximum of Rp1,5 trillion, is insufficient. The cited budget is needed to build a distribution network that will provide electricity to 70.000 villages in 32 provinces.

Emy said, the private sector is very much needed to participate in this massive construction of electricity infrastructure. Currently, the demand for electricity nationwide grown by 8.63 percent compared to last year’s 5.9 percent. The total capacity installed until the end of 2010 was 32.410 MW.