PLN to involve private firms in building Sumatra's power grid

JAKARTA (JP): The state-owned electricity company PLN will involve private companies in the development of the Sumatra power grid, the company's president Djiteng Marsoedi said yesterday.

He said the government was building many power plants in Sumatra to meet the growing demand for electricity there. The power stations will be connected through a power grid.

"We expect the Sumatra power grid, which will connect Sumatra's northern most province of Aceh and southern most Lampung, will be completed in the year 2000," said Djiteng as reported by Antara in Sawah Lunto, West Sumatra.

Djiteng said that to involve the private sector in the grid's development, PLN recently signed a memorandum of understanding with the United Kingdom's National Grid Company and Indonesia's PT Intra Sarana Manunggal to set up a joint venture. He did not elaborate.

He was speaking after the opening of a coal-fired power plant in Ombilin, Sawah Lunto, West Sumatra, by Minister of Mines and Energy I.B. Sudjana.

The Ombilin power plant, which cost about US$278 million, has a generation capacity of 200 Megawatts (MW).

He said that compared to the diesel-fired power plant, the coal-fired power plant -- which needs about 438,000 tons of coal a year -- would save Indonesia about Rp 150 billion (US$62.5 million) in foreign exchange each year.

Minister Sudjana also said at the opening ceremony that the government would continue to build power plants in Sumatra to meet the growing demand for electricity.

According to official data, Sumatra's demand for electricity has been growing by about 20 percent a year.

"We'll also diversify our energy sources. Oil still dominates as the country's primary energy source," he said. (bnt)