Jakarta, CNBC Indonesia – Minister of State-Owned Enterprises (BUMN) Erick Thohir sent a letter to Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif, asking that the operational and financial performance of PT PLN (Persero) be given support.
Through this letter dated 18 September 2020, Erick asked the Minister of Energy and Mineral Resources to help PLN’s performance by limiting the issuance of business permits for providing electricity and captive power. The aim is to encourage consumption of electricity which is currently oversupply.
PLN also spoke up about the letter. Director of Commerce and Customer Management of PLN, Bob Saril, said the purpose of the request was for national efficiency, including for customers.
According to him, the government has assigned power plant projects in the 35,000 mega watt (MW) program, so that currently, especially in the midst of declining demand for electricity due to the Covid-19 pandemic, the electricity supply from PLN is very adequate.
“That’s for national efficiency as well as for customers. The government has assigned PLN to the 35 GW program. Currently, the supply is very adequate,” he said to CNBC Indonesia via short message, Thursday (01/10/2020).
If the electricity needs have been met by PLN, according to him, entrepreneurs will focus on their business fields that have become their expertise. “Of course that is if the electricity supply is PLN which handles it,” he said.
According to him, several industries that already have their own generators, such as smelters, can still be used as long as they get permission from the government. However, according to him, it would be even better if the electricity supply, which had been from captive power, could be transferred to be supplied by PLN.
Captive power is a condition in which a company manages and provides its own source of electricity supply, outside of the supply from PLN.
“They are still using (captive power). If there is a permit from the government, there is no problem. If you want the captive to be taken (PLN) it is even better, because from a customer perspective, it is more economical and also efficient nationally, especially in the regions. / islands that have already formed interconnections, “he said.
EVP Communication and CSR of PLN, Agung Murdifi, said that PLN ensures that the power supply throughout the electrical system is in sufficient condition and is ready to be the driving force of the economy.
“We want to make it easier for industry and business players in carrying out their business operations in Indonesia. Industry and business players only focus on the production of their business, so that PLN provides the electricity. According to the mandate given to us, electricity must be the driving force of the economy,” he said to CNBC Indonesia.
According to him, the company has launched a number of programs to make it easier for customers to get access to electricity, one of which is through electrifying agriculture. Through this program, he continued, the company wants to provide special services for irrigation for agriculture, fisheries and animal husbandry that offer 24-hour electricity solutions.
“In order to support electrification in the agriculture sector, we have issued a Meteor Garden product (Outdoor Meter for Standard Protection and Safe Non-Parcel Customers) to support irrigating rice fields,” he said.
He said the benefits of this program were already being felt in several areas. Agung gave an example where a rice mill entrepreneur in Demak explained that when using diesel, the cost for electricity per month was around Rp. 32 million, but now after using PLN electricity it costs around Rp. 10-15 million.
Meanwhile, Special Staff of the Minister of BUMN Arya Sinulingga confirmed that BUMN Minister Erick Thohir sent a letter to Minister of Energy and Mineral Resources Arifin Tasrif regarding a request for support for the operational and financial performance of PT PLN (Persero).
In fact, he said the letter was not only sent to the Minister of Energy and Mineral Resources, but also to the Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia.
“Regarding the Minister’s letter to the Minister of Energy and Mineral Resources and the Head of BKPM, it is true,” he said in Jakarta, Thursday (01/10/2020).
However, according to him, the letter does not mean that PLN is in a bad condition, but is in a position of excess electricity supply. Thus, the purpose of this SOE Minister’s letter is none other than to maximize the existing PLN electricity supply capacity.
“The Minister’s letter does not mean that PLN is in a bad condition, but what the Minister sees is that PLN is already over supply. Why don’t you use it and also if there is a new institution, what’s the name, you don’t need to build a new generator because it’s over supply, it’s good to use it. existing ones, “he explained.
According to him, this would be a waste if in the midst of an excess supply of electricity, but instead building a new power plant. In fact, he added, PLN was able to meet the electricity supply.
“So there is no waste too, waste of energy. It’s a shame if for example we build a new generator, there will be another industry that will build a new generator while PLN itself is able to meet these needs,” he said.
The following is the complete content of the letter from Erick Thohir regarding the ‘Support to the State Electricity Company (Persero)’:
Taking into account the condition of PT Perusahaan Listrik Negara (Persero) / PT PLN, both operational and financial performance affected by the Covid-19 pandemic, we hope that your support will help the performance of PT PLN as follows:
1. To overcome the condition of excess power supply, efforts are needed to increase electricity demand. We hope for your support to encourage business actors to use the electricity provided by PT PLN (Persero), among others by limiting the granting of business permits for electricity supply and captive power.
2. Adjustment of 2020-2029 RUPTL by considering:
a. The capacity of the electricity infrastructure that has been / is being built,
b. Demand projection,
c. Funding capability, both from the state budget and PT PLN finances
Thus we convey and for your attention and support for improving the performance and services of PT PLN, we thank you.
(Head / head)
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