New power plant to be built in North Sumatra
Apriadi Gunawan, The Jakarta Post, Medan
PT Mega Power Mandiri, which is owned by Ahmad Kalla, a brother of the country's new Vice President Jusuf Kalla, plans to develop a US$250 million power plant in North Sumatra.
North Sumatra Governor T. Rizal Nurdin told reporters on Wednesday the provincial administration had issued the necessary license to the company for the development of the 219-megawatt (MW) hydroelectric plant, which would span Bandar Pulau district in Asahan regency and Meranti district in Samosir regency.
Rizal said Mega Power planned to start construction next year and complete the plant by 2008.
"The investment value of the power plant is around $250 million, or about Rp 2 trillion," he said, adding that the new PLTA Asahan III power plant would help secure the province's electricity supply and avert the looming power crisis.
According to Maradjohan Batubara of state electricity firm PLN's North Sumatra branch, the capacity of installed power plants in the province totaled 1,050 MW, compared to peak-hour demands of 1,030 MW from 6 p.m. to 10 p.m.
"This means that PLN has a leeway of only 20 MW. Ideally, the power reserve should be from 200 MW to 400 MW," Maradjohan told The Jakarta Post, pointing out that a small reserve supply would be risky, particularly in the case of a power shutdown at one of the plants, which could reduce the supply by up to 200 MW.
Indonesia faces the threat of a power crisis due to rising demand against a limited supply due to lack of investment in the sector. The new government has promised to work hard to lure new investment to the country, including the crucial power sector.
Elsewhere, Rizal said the provincial administration hoped more private investors would participate in developing the power sector in the area, particularly in hydroelectric and geothermal plant projects.
He pointed out that water resources in North Sumatra had the potential to provide around 2,000 MW of electricity, while geothermal resources could produce up to 1,300 MW.