President Joko Widodo visits the site of an abandoned 2x15 megawatt coal-fired power plant (PLTU) project in Waai village, Central Maluku regency, Maluku, on Thursday (9/2). The project was abandoned in 2014. In this photo, the President is seen talking with Energy and Mineral Resources Minister Ignasius Jonan (second left), Maluku governor Said Assegaf (third left) and presidential spokesperson Johan Budi (right).
CENTRAL MALUKU, KOMPAS – The electricity crisis in Maluku needs to be tackled immediately, as it significantly affects investment and local development. President Joko Widodo has expressed his regret over years of stagnation on a local power plant project amid such pressing needs.
The President inspected the stalled Waai Ambon coal-fired power plant (PLTU) in Waai village, Salahutu district, Central Maluku regency, Maluku, on Thursday (9/2/2017). At the project site, the President held a serious discussion with a number of ministers, including Energy and Mineral Resources Minister Ignasius Jonan.
“There is an urgent need for electricity in Maluku. I have been informed about this. The government has a plan to construct a power plant, but the project is stagnating,” the President said.
Apart from public reports, the President said he had also received complaints from the leaders and members of the Maluku and Ambon regional legislative councils (DPRD) the day before. “Last night, I held a discussion with them. I received complaints about poor electricity supply,” he said.
Widespread issue
The PLTU project, President Joko Widodo said, was one of 34 stalled power plant projects for an expected total capacity of 621.8 megawatts (MW). The projects are spread across Sumatra, Kalimantan, Sulawesi, East Nusa Tenggara, Maluku and Papua.
A Development Finance Comptroller (BPKP) report submitted to the President in early November 2016 showed that, of the 34 stagnating projects, 41.18 percent of the total contract value of Rp 12.01 trillion (US$902.47 million), amounting to Rp 4.94 trillion, had been paid by the government and state-owned electricity company PT PLN.
According to BPKP’s report, based on various studies and considering physical progress on the projects, only 22 of the 34 projects are feasible to be continued, with an estimated cost of Rp 7.25 trillion.
The BPKP report specifically addressed the Waai Ambon PLTU project, valued at Rp 219.23 billion plus US$25.09 million, which was halted on February 25, 2014. The performance bond expired on October 23, 2013 and was never renewed.
Physical progress on the Waai PLTU project has reached 66.79 percent, with a payment realization of Rp 126.24 billion plus US$19.99 million.
The project was originally planned to replace a local diesel power plant (PLTD) and strengthen electricity supply in Maluku, where the peak load can reach 54 MW.
Reports suggest the project was discontinued as the project partners had financial problems. The funds needed to finish the 2x15 MW power plant amount to around Rp 800 billion.
The project was included in the 2006/2007 electricity procurement business plan and was scheduled for completion in 2011.
Upon the project’s stalling, a number of state officials inspected the construction site, but there was never any clarity on whether or not the project would be continued. State-Owned Enterprises Minister Rini Soemarno visited the site in February 2016. The Corruption Eradication Commission (KPK) reportedly mulled investigating the stagnation, with KPK investigators visiting the site in recent years.
As of 2016, Ambon Island has more than 100,000 electricity consumers, growing at an annual rate of 9 percent. Also in 2016, people in Ambon often complained about poor electricity supplies due to the frequent rotating blackouts of more than two hours a day.
The peak load of 54 MW cannot be served during power disruptions at the PLTD, which is why a high-capacity power generator is urgently needed.
Ask PLN
On Thursday morning, the President experienced a power outage on his visit to Ambon. A similar incident occurred during the President’s work visit in Wamena, Papua, in 2016. The President immediately decided to inspect the stalled power plant project.
Aside from Jonan, the President was accompanied by Coordinating Human and Culture Development Minister Puan Maharani, Cabinet Secretary Pramono Anung and presidential spokesman Johan Budi.
Jonan said the abandoned PLTU project was part of the second phase of the fast-track program that was started in 2010. According to Jonan, difficulties in realizing the plan also stemmed from the long distance of coal sources from the project site.
According to the original plan, the PLTU was designed as an independent power plant selling its electricity to PLN. Jonan said he did not know exactly why the project was stopped in 2014, adding that he would first ask PT PLN about the power plant’s future.
In the future, it would be more efficient for power plants in this location to use gas as a fuel, Jonan said. The gas could be delivered from West Papua. “We need to consider the available sources of energy in each region. This is more feasible.”
