PLN considers rescheduling Paiton projects
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)