Strategic industry companies to help PLN in new projects
Strategic industry companies to help PLN in new projects
JAKARTA (JP): The 10 state-owned strategic industrial
companies are committed to helping the State Electricity Company
(PLN) improve its power generation technology and design in the
near future.
A memorandum of understanding on this cooperation was signed
yesterday by PLN's president, Zuhal, and the vice chairman of the
Agency for the Management of Strategic Industries (BPIS), Giri
Suseno Hadiardjo, who represented the strategic industrial
companies.
The agreement, which lasts for five years with an option for
expansion by up to 20 years, will allow BPIS to integrate its 10
companies to participate in the construction of power plants,
technology procurement and joint research.
"We are optimistic that the state strategic industrial
companies can tackle important jobs for PLN's power projects,"
Giri said. "Dependence on foreign contractors, therefore, will be
able to be reduced for the construction of power projects."
He told reporters that only three strategic industrial
companies are so far involved in PLN projects.
The three are the engineering firms PT Boma Bisma Indra and PT
Bharata and the shipbuilder PT PAL.
"Boma Bisma Indra was responsible for the basic design of two
coal-fired power units in Paiton, East Java, with a combined
capacity of 800 megawatts (MW)," Giri said.
Bharata and PAL, meanwhile, engineered boilers for the Paiton
project, which was dedicated by President Soeharto last month.
"PAL can now produce turbines for power plants," he told The
Jakarta Post.
Besides the three companies, BPIS also supervises the
management of the aircraft manufacturer PT IPTN, steel producer
PT Krakatau Steel, military equipment producer PT Pindad,
telecommunication equipment manufacturer PT Inti, explosives
maker PT Dahana, railway equipment company PT Inka and
electronics company PT LEN.
Massive plans
Zuhal said the new relationship is part of the PLN's plans to
set up new power plants with a total capacity of 13,000 MW and
11,000 kilometers (km) of transmission networks throughout the
country during the newly begun Sixth Five Year Development Plan
(Repelita VI) period.
"If we depend mostly on foreign companies, the costs for the
development of our electricity projects may exceed Rp 60 trillion
(US$27.9 billion," he said.
For the first stage of cooperation, BPIS companies can tackle
transmission work in Java, he said.
PLN plans to establish 5,000 km of transmission wire
throughout Java and 6,000 km on other islands, he said.
He estimated the total costs for the transmission project at
$5 billion.
"With BPIS' involvement, I believe, the costs can be reduced
because more local products will be used," he said.
He said that the recent failures to meet the government's
target of 25 percent local content in PLN projects will be made
up for.
"PLN and BPIS are committed to increasing local products in
electricity projects to over 30 percent this year," he said.
When asked about power supply, Zuhal said PLN's power plants
in Java currently have a total capacity of 10,141 MW, far higher
than demand, which ranges from 5,000 MW and 6,000 MW.
"PLN plans to increase capacity by 1,000 MW this year to
anticipate increased demand from industrial plants," he said.
Hizban Ahmad meanwhile told the Post that electricity demand
in Java grew by 11 percent last year, as compared to 15 percent a
year earlier. (fhp)