30 March 2010

Seven investors to build power plants in S Sulawesi

Seven investors in South Sulawesi expressed readiness to make an investment in building power plants in the province

ANTARA News | March 30, 2010

The seven investors expressed their readiness during a discussion on electricity here on Monday attended by General Manager state power company PT. PLN Sultan Batara for South, West and Southeast Sulawesi here on Monday.

PT PLN General Manager Ahmad Siang guaranteed that the power crisis in South Sulawesi would be over in the next three years.

He said he has opened the opportunity to investors interested in joining the power sector, especially that the state power company was still considerably short of power supply.

"On March 31, 2010, PLN had promised to stop imposing power cuts, which had actually already be started 14 days ago," he stressed.

With regard to the excess power supply, he said he was rather pessimistic whether PLN would be able to sell the electricity.

"Actually PLN is expecting that up to 2014, there will be some 50,000 new subscribers," Ahmad said.

But under the current PLN management board, the company said it is already committed to continue serving the public the best it can, so that there would no be any power cuts in the coming years.

In the meantime head of the BKPMD control and supervisory division Yos Harmen said for the time being only two investors have realized their investment to build power plants with a capacity of 195 MW.

"Right now, the two independent power producers were considering raising the production capacity by 220 MW, namely a PLTG by 2x 60 MW, and a PLTA by 100 MW, to be realized in the next three years," he said.

He said the seven investors may have a capacity to invest a total of Rp6.9 trillion.

"If all the investment has been realized, it had been estimated that South Sulawesi would have a large excess of power supply in the three years," he said.

The seven investors are PT Energy Sengkang with an investment of 221 million US dollars, PT Makassar Power 70 million dollars, PT Malea Rp882 billion, PT Sulawesi Mini Hydro 2.5 million dollars, PT Bosowa Energy Rp1.74 trillion, PT Fajar Futura Energi Rp40.8 billion, and PT Kassa Listrindo Rp1.2 trillion.

Some foreign investors also wishing to investment the province include PT Energy Sengkang, PT Makassar Power, and PT Sulawesi Mini Hydro, in addition to domestic investment current still being processed.

He said that only two of the investment of the seven power plant companies had been realized so far, because of internal problems and the lack of agreement on the price of electricity for PLN.

"The BKPMD is already giving facilities to investors, including tax reduction for the import of generators by 10 to nil percent, and generator import duty exemption by 10 to nil percent," he said.

These are only some of the facilities given by BKPMD, but why five investors have not started building their power plants?, he said. (*)

COPYRIGHT © 2010

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