PLN considers rescheduling Paiton projects
JAKARTA (JP): The government-sponsored committee in charge of restructuring the state electricity company Perusahaan Listrik Negara (PLN) is considering rescheduling two giant power plant projects in Probolinggo, East Java.
PLN president Djiteng Marsudi said yesterday the company needed to reschedule the projects, Paiton I and Paiton II, to ease its financial burdens and address an increasing power glut on the Java-Bali power grid.
"(The rescheduling) is (part of) the agenda of the committee for the restructuring of PLN," Djiteng said in a hearing with the House of Representatives Commission V for industry, mining, trade, manpower, cooperatives and the environment.
The 1,230 megawatt (MW) coal-fired Paiton I power plant is owned by a consortium consisting of America's Mission Energy and General Electric, Japan's Mitsui company and Indonesia's Batu Hitam Perkasa. Batu Hitam is controlled by Hashim Djojohadikusumo.
The power plant is scheduled to come on line in November.
The 1,220 MW coal-fired Paiton II power plant is owned by a consortium consisting of Siemens of Germany, Power Gen. Plc. of Britain and PT Bumipertiwi Tatapradipta. Bumipertiwi is controlled by ex-president Soeharto's son Bambang Trihatmodjo.
The power plant is scheduled to start its operations next year.
State Minister for the Empowerment of State Enterprises Tanri Abeng formed the restructuring committee last month to review PLN's operations and to develop a strategy for dealing with controversial power purchase agreements the company can no longer afford.
The committee consists of PLN directors and representatives of Tanri's office and the Ministry of Mines and Energy.
Djiteng said the power supply on the Java-Bali grid currently totaled 14,000 MW, much higher than current demand ranging between 11,500 MW and 12,420 MW.
Replacement
Djiteng confirmed yesterday he would be replaced as PLN president but said he did not know the timetable for the reshuffle or who his successor would be.
"I was told by State Minister Tanri Abeng last week that I would be promoted to head of the committee for the restructuring of PLN," Djiteng said.
Djiteng has been PLN president for only three and a half years. PLN regulations stipulate that its presidents serve five years. The president can, however, be replaced before the end of his or her tenure for special reasons.
Djiteng said he did not know the reason for his early replacement.
Some analysts linked Djiteng's replacement to his tough action against projects linked to ex-president Soeharto's family.
Last month, he unilaterally canceled a power purchase agreement with PT Cikarang Listrindo, partly owned by Soeharto's cousin Sudwikatmono. The move raised fears among foreign investors who control most of the country's power projects.
About 100 PLN employees staged a demonstration outside the House of Representatives yesterday to demand that Djiteng be kept on as PLN president.
House members called on the government yesterday to conduct the reshuffle of PLN's management in a professional manner and in accordance with the company's statutes. (jsk)