Indonesia Calls for Cash Injection to Meet Surging Power Demand

9 September 2010 (Last Updated September 9th, 2010 18:30)

Indonesia requires investments worth $9.74bn to generate an additional 6,248MW for 2011, according to state utility firm PT Perusahaan Listrik Negara (PLN). The investment amount is required for the country to reach its targeted growth in electricity production of around 9% annually, ac

Indonesia requires investments worth $9.74bn to generate an additional 6,248MW for 2011, according to state utility firm PT Perusahaan Listrik Negara (PLN).

The investment amount is required for the country to reach its targeted growth in electricity production of around 9% annually, according to The Jakarta Post.

Of the total, up to $6.61bn is needed for power plants, $2.05bn for power transmission and $1.09bn for distribution facilities.

Of the 6,248MW, PLN plans to provide 4,985MW and IPPs are expected to generate the remaining 1,262MW.

PLN planning and technology director Nasri Sebayang told The Jakarta Post that the proportion of investment contributed by PLN and IPPs is equal to the increase in power generated by each party.

"Normally, PLN's internal funding and the state budget contribute around 15% to the total investment," Nasri said.

"The remaining 85% comes from loans, but we don't know what will happen next year because we are still waiting to see how much we will get from the government in terms of our margin for investment," Nasri said.

Coal-fired power plants will comprise a large portion of the increase in supply, producing up to 4,981MW or around 80% of the total capacity increase.