President inaugurates hydropower in Sulawesi, reminds PLN to cut bureaucracy

The President of the Republic of Indonesia Joko Widodo giving a press statement in Jakarta, 9 December 2019. (Photo: Triawanda Tirta Aditya/shutterstock.com)

Jakarta – President Joko Widodo reminded directors of the State Electricity Company (PLN) to streamline their bureaucracy so that  negotiation of business licenses does not take years. This was conveyed when he inaugurated two Hydroelectric Power Plants (PLTA) in Sulawesi on Friday (25/2).

President Jokowi inaugurated the 515 MW Poso Energy PLTA in Poso Regency, Central Sulawesi and the 90 MW Malea PLTA in Tana Toraja Regency, South Sulawesi. Indonesia is implementing the development of PV mini-grid widely throughout the country as part of its efforts to achieve the new and renewable energy mix (NRE) target of 23% by 2025.

“I want to emphasize this morning is that bureaucracy, especially at PLN, is taken care of. There should not be another complaint like what was said by Mr. Jusuf Kalla, that their licensing negotiations took more than five years,” he said responding to a complaint by former Vice President Jusuf Kalla. Malea Energy hydropower plant is owned by the Kalla Group, which took 12 years to complete, including five years in obtaining permits.

“That’s just for getting the permit, (then there is the process of) getting funding from the banking consortium, it’s not something easy,” added Jokowi.

Earlier on Wednesday (23/2), General Chairperson of the Indonesian Renewable Energy Society (METI) Surya Darma revealed that the development of electricity generation from NRE in the last five years was not significant, even though the potential of NRE resources of 3,698 GigaWatt (GW) was considered sufficient.

According to Surya Darma, from electricity, the target (NRE mix) in 2025 is not 23%, but around 33%-34%. According to him, pursuing the target of the NRE mix of 33%-34% of the electricity sector in 2025 is considered difficult. (nsh)

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