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Indonesian president adamant on mega power plant projects

Xinhua, September 10, 2015 Adjust font size:

Indonesian President Joko Widodo was adamant on the continuance of mega power plant projects in the country with total capacity up to 35,000 Mega Watt (MW), which will be completed during his five-year service tenure.

The president's statement was to respond doubts conveyed by one of his top ministers who said earlier that the mega power plant projects may not be accomplished within five years, adding that the nation's actual need was power plant projects with total capacity of up to 16,000 MW.

"The president told me personally just now that the 35,000 MW power plant projects was a need. The president sees that power plant development was part of efforts to rejuvenate the industry sector in Java, Kalimantan, Sumatra and Sulawesi which have been designated as regions to host more manufacturers," Head of Presidential Staff Teten Masduki said on Thursday, citing to the president's statement on the power plant projects.

Coordinating Minister for Maritime Affairs Rizal Ramli said earlier that with more 35,000 MW power supply by 2019, Indonesia would see excess power supply. He said that it would burden the state power firm of PLN as it has to pay for the idle power capacity.

Teten added that government has identified problems lingering in the unfinished construction of mega power plant projects initiated in the previous administration.

He added that compensation and permit issues have hindered the completion of the power plant projects with total capacity of 10, 000 MW.

According to Teten, with the president's recently-issued economic policy package, the government was optimistic to accomplish the 35,000 MW power plants projects gradually within the next five years.

"With the new economic policy package, the government tries to reduce permission hurdles. Besides that, government would be able to provide project site that has been a major problem hindered infrastructure projects," Teten added.

The new economic policy package was announced by President Joko Widodo on Wednesday, containing reform drive in permit issuance, bureaucracy, tax incentive and legal certainty, were intended to boost up development of infrastructure projects and economy activities in the country. Endi