GOI Announces the Second 10,000 MW Accelerated Power Plant Projects

Jakarta -- February 2010.

The Government of Indonesia (GOI) has recently issued Presidential Regulation No. 4 Year 2010 on the Appointment to PT Perusahaan Listrik Negara (Persero), Indonesia State Electricity Enterprise also known as PLN, to carry-out the acceleration of the development of electrical power generating plants utilizing renewable energy, coal, and gas (the Projects). These Projects constitute the second phase of accelerated development of 10,000 MW power generating plants and their related transmission lines. The first phase of the 10,000 MW accelerated power generating plant development, announced in 2006, covers mostly coal fired steam turbine power generating plants in Java Bali Islands and Outside Java Bali Islands to replace costly oil fired power plants.

The Second Phase of the 10,000 MW Accelerated Power Plant Projects includes development of geothermal, hydroelectric, coal fired and gas fired power plants and related transmission lines, which shall be carried out by 2010 through 2014. The Presidential Regulation No. 4 Year 2010 further stipulates that:

  1. The implementation of the Projects shall be carried out through the Government appointment to PT PLN (Persero) [by tendering process EPC contracts] and through cooperation between PT PLN (Persero) and private electricity developers with power purchase agreement scheme [by tendering process of IPP contracts].
  2. The Projects shall use environmentally friendly technology in accordance with prevailing laws and regulations.

Subsequent to the issuance of Presidential Decree No. 4 Year 2010, Minister of Energy and Mineral Resources (ERM) issued Minister ERM Regulation No. 2 Year 2010 on appointment to PT Perusahaan Listrik Negara (Persero) to carry out the acceleration of the development of electrical power generating plants utilizing renewable energy, coal and gas. Minister ERM Regulation No. 2 Year 2010 provides list of the capacity, location of electrical power generating plants, and related transmission lines.

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