A memorandum of understanding has been signed by Indonesia Power and South Korea’s Doosan Heavy Industries & Construction. The understanding between both companies will create another two power units at the Suralaya Coal Fired Power Plant in Cilegon, Banten, at the cost of US$1.68 billion.
Through this agreement, an additional 1,000mw of power will be added to Indonesia’s national grid helping to connect the remaining 9% of the population without any access to electricity.
The additional power units will be using the most technologically advanced power generation using coal. Super-critical coal power stations reduce carbon emissions and improve efficiency.
In 2014, President Joko Widodo announced an ambitious target of adding an additional 35GW of power by 2019 in order to achieve a national electrification target of 97.7%.
However, as it stands the Indonesian Ministry of Energy and Mineral Resources reports that they have an access to electricity rate of 91.16% and the US government is sceptical that this target will be met, with predictions that only 7 to 9 GW of power will be completed within this period.
Indonesia has achieved great success in the energy market especially after it broke up their state-owned electricity company and opened up the market to private investment towards the end of 2009. But greater investment and commitment by the private sector and government is required.
The government’s National Electric Generation Plan (RUPTL) has now estimated that by 2026 the access to electricity rate will reach 99.4%. The introduction of the the two new power units at Suralaya Power Station creating an additional 1GW will significantly help to achieve this ambitious target.
Nevertheless, in order to reach the 35GW target, the Indonesian government has predicted that 5GW will be created by the state-owned company, with the remaining 30GW created by private investment. This would also create an additional 291 power plants across the 18,000 island archipelago, meaning more jobs and investment into the Indonesian economy.
Indonesia is clearly set to achieve the United Nation’s Sustainable Development Goal of 100% energy access by 2030, and it should continue on its current trajectory.
Neighbouring nations and other developing countries should look to Indonesia for inspiration and help to provide reliable base load fossil fuel power in order to give every citizen of the world access to this vital and life-changing resource.