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

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)