Saturday, February 11, 2017

Indonesia: Gov't to Impose Penalty over Halted Power Plant Project

Indonesia: Gov't to Impose Penalty over Halted Power Plant Project

Jarman, director general of electricity at the Energy and Mineral Resources
Ministry, hoped that Energy Minister Regulation No. 10/2017 will serve as a
solution to halted electricity project issues.

"We basically expect that all projects can be completed on time," Jarman
said at his office in Jakarta on Friday, February 10, 2017.

Jarman revealed that the bill regulates penalty mechanism when a private
power generation company failed to meet the deadline. Jarman said that the
penalty mechanism will be set forth in power purchase agreement.

Jarman said that private power generation company will be imposed with a
penalty if it fails to meet commercial on schedule. The government is given
the authority take over the project if the failure continues.

"If the delay continues, [the government] will take over, because the
company has run out of money," Jarman said.

President Joko "Jokowi" Widodo earlier inspected a steam-fueled power plant
project in Waai, Maluku. The halted power plant has a capacity of 30
megawatt. The project that commenced in 2010 has halted since 2014.

According to Jarman, there could be an issue with the design of the project,
since it uses coal instead of geothermal energy. According to President
Jokowi, the region has a huge geothermal potential.

Jarman explained that the National Energy General Plan mandates the
government to prioritize local energy potentials.

"If a region has a geothermal potential, such an energy source must be
optimized," Jarman said.

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Link to Original Article:
https://en.tempo.co/read/news/2017/02/10/056845273/Gov%E2%80%99t-to-Impose-P
enalty-over-Halted-Power-Plant-Project


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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

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