REPUBLIKA.CO.ID, JAKARTA -- Even though it was criticized by a senior minister, the government is still confident of achieving its target to develop power plants with a total capacity of 35 thousand megawatts (MW) by 2019.

"Seeing the progress till date, we are optimistic. The only challenge remaining is land clearing and licensing," Energy and Mineral Resources (ESDM) Minister Sudirman Said stated last week.

The minister had made the statement following criticism by the Coordinating Minister of the Maritime Affairs, Rizal Ramli, who suggested that the government review its target to build new power plants in the next five years.

Ramli had said that it would be difficult to reach the 35 thousand MW target in 2019, especially with the carryover of a 7,000 MW pending target from the previous government.

The coordinating minister said he would ask Said and the National Energy Council to re-evaluate the target set by President Joko Widodo.

"I will ask the ESDM minister and the National Economic Council (DEN) to make a realistic re-evaluation of the target. Don't set too high a target, which becomes difficult to achieve," the new coordination minister said.

However, Minister Said reiterated that the target was achievable, saying that state-owned electricity company PLN had signed power purchase agreements (PPA) for the realization of 10 thousand MW projects this year.

"Next year, hopefully, more agreements will be signed for 15 thousand MW," he said.

The same optimism was also expressed by PLN, which said it was confident about completing the power plant construction projects that would boost total capacity to 35 thousand MW by 2019.

"We will run the government program to build a 35 thousand MW power plant," the Director of Strategic Procurement and Primary Energy at PLN, Amin Subekti, had said on August 14.

PLN could meet the target of signing a power purchase agreement (PPA) totaling 10 thousand MW, he asserted.

State-owned PLN has signed several agreements with other parties, including the Gas and Steam Power Plant (PLTGU) Grati, located in Pasuruan, East Java province, amounting to 450 MW, Subekti pointed out.

"The New and Renewable Energy and Energy Conservation (EBTKE) Connect is scheduled for next week, where we will sign for one unit of a coal power plant expected to generate 70 MW and one unit of a hydropower plant for 3x13 MW, and solar power plants to be opened in the eastern region of Indonesia," he said.

According to Minister Said, this year's realization had already begun through power purchase agreements (PPA) signed for 10 thousand MW, with the national power utility PT PLN.

"Next year, hopefully more agreements would be signed for 15 thousand MW," he said.

He added that around 20 percent of the targeted construction had been completed, and was optimistic of the full target being achieved, but that an evaluation would also continue.

"The evaluation is not intended to cut the target, but to determine how we can achieve the target sooner," he stated.

He said the target of 35 thousand MW had been set based on need and studies.

The remaining 7,000 MW carryover from the previous government was now 50 percent completed, he said.

Commenting on the targeted projects, the Director General of Electricity, the Ministry of Energy and Mineral Resources, Jarman revealed that the first independent power producers (IPP) had generated 25 thousand MW, and PLN had produced 10 thousand MW.

"But it was then converted into 30 thousand MW for IPPs and 5,000 MW for PLN. From the IPP alone, a minimum of 10 thousand MW is expected to be signed this year through PPA, while the rest will be set by 2016," he explained.

By signing the PPA this year it is expected that the power plant project will be completed by 2019, Jarman added.

In order to expedite the 35 thousand MW power projects, the government hopes that the number of investors taking part in the development of electricity in the country would increase.

For this purpose, a legislator suggested that the government improve investment mechanisms to attract more investors in the development of electricity in various parts of the country.

"It is impossible for the government to increase investment and boost economic growth if the country runs short of electricity supplies," Kurtubi, an energy analyst and a member of Commission VII on energy affairs of the House of Representatives (DPR), said on Saturday.

Kurtubi who is also a politician of the Democratic Party reminded the government that the national electricity ratio was still smaller compared with neighboring countries.

The per capita electricity consumption in Indonesia is only 733 kilowatts (kWh), while in Malaysia it is pegged at 4,313 kWh per capita. Singapore's electricity consumption per capita has reached 8,690 kWh.

He said that up till the end of 2014, the installed capacity of electricity nationwide was predicted to be 50,000 MW. This capacity would be used to supply electricity for about 250 million people.

Therefore, Vice President Jusuf Kalla urged state-owned electricity company PLN to expedite the construction of power plants, with the total capacity pegged at 35 thousand MW, through the Independent Power Producer (IPP) mechanism, which involves private players.

"PLN can provide only Rp400 to Rp500 trillion (about US$30.4 to US$38 billion) to construct the plants. We need more private players to make electricity widely available," Kalla had stated in April.

Thus, with the country's current capacity estimated to be 50 thousand MW, the completion of the development of power plants, with their targeted capacity of 35 thousand MW, is expected to raise the country's total electricity generation capacity to 85 thousand MW by the end of 2019 or when President Widodo's term ends. (Andi Abdussalam).

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