The construction project of a steam-fired power plant in Waai village, Salahutu district, Central Maluku regency, Maluku, which has been stalled since 2013, was tightly guarded on Friday (10/2). Journalists have been banned from taking photos of it without permission from the executives of state electricity company PT PLN. Kompas took the photo of the project site from behind a wall.
JAKARTA, KOMPAS – The Energy and Mineral Resources Minister’s newly issued Regulation No. 10 Year 2017 concerning Principles in the Power Purchase Agreement is expected to be able to prevent delays in electricity projects.
Under this regulation, a contractor will be fined if the operation of a power plant is not on schedule.
Of the 34 stalled power projects throughout Indonesia, six of which were taken over and resumed by state owned electricity company PT Perusahaan Listrik Negara (PLN).
Executive Director of the Institute for Essential Services Reform, Fabby Tumiwa, said that with the implementation of a number of strict requirements imposed on contractors in the new regulation, only a bona fide contractor could be selected. The requirements include technical and financial capabilities. The possibility of delayed projects can be anticipated with the new regulation.
"In general, the regulations could minimize the risk of project delays. However, these rules cannot 100 percent prevent electricity projects from suffering delays, especially due to factors related to changes in government or PLN policy," Fabby said Friday in Jakarta.
The 34 stalled projects worth Rp 11.3 trillion are located in Sumatra, Kalimantan, Sulawesi, East Nusa Tenggara, Maluku, and Papua. The total generating capacity of the stalled projects is 627.8 megawatts (MW). The projects were carried out during 2007 to 2012 and none of them are part of the 35,000 MW electricity generation program.
The head of PLN’s Corporate Communications, I Made Suprateka, said the company had tried to resume a number of the stalled projects. In terms of whether they cause financial losses, it is the Supreme Audit Agency (BPK) that will determine such matters, he said. He acknowledged the delays in the projects would slow the distribution of electricity to the public.
Of the 34 stalled projects, 17 projects would be resumed. Six projects were taken and resumed by PLN while the 11 projects would be offered to new investors with the expansion of the transmission network and substations or replacement of the plant type. The type of the power plants would be replaced with those of gas power plants, diesel, or engine and gas power plants (PLTMG).
Meanwhile, the provincial Government of Maluku hopes President Joko Widodo would soon decide the continuation of the construction of a thermal power plant in the village of Waai Salahutu subdistrict, Central Maluku district, Maluku.
The legal issues related to the construction of the power plant should not cause a further delay in the project.
Maluku Governor Said Assagaff, through the head of the Public Relations of the Maluku provincial government, Bobby Palapia, made the hopeful statement after President Jokowi inspected the project site last Thursday. The President directly observed the project, which had been stalled since 2013.
"We believe the president will make the best decision after seeing the condition. Electricity is needed in this area, "said Bobby.
The Waai power plant was built to address the electricity shortage in Ambon, which consists of Ambon city and three districts in the Central Maluku regency.
Hambalang
Separately, Minister of Public Works and Public Housing Hadimuljono Basuki said the development of the Center for Education, Training, and the National Sports School in Hambalang, Bogor, West Java, would be resumed.
"The stalled project will be resumed. They are a part of the master plan. We will only resume the stalled ones, not complete the master plan," Basuki said.
