POWER July 2013 - 36

POWER POLICY
of President Yudhoyono to transform the
country into one of the world's 10 major
economies by 2025-and lift millions of
its citizens out of poverty-Indonesia in
2011 published the " Master Plan for Acceleration
and Expansion of Indonesian
Economic Development. " It includes more
than 500 projects throughout the country
as well as six development corridors aimed
at creating economic clusters in various industrial
sectors. Among its key elements is
a $96 billion injection to boost the country's
ailing power infrastructure. It calls
for the installation of least 55.1 GW of new
generation capacity and 49,299 km of new
transmission lines by 2020 (Figure 6).
Modeled on the master plan, PLN later
released its own business plan, outlining
how the nation's power supply could be
more than doubled over the decade-long
planning period. Significantly, it specifies
that IPPs will contribute 43% of the total
capacity needed: PLN will add 31.5 GW
and IPPs will add 23.8 GW by 2020.
Coal. Sitting on at least 6.1 billion short
tons of recoverable coal reserves-mostly
bituminous or subbituminous and located
primarily in Sumatra and East and South
Kalimantan-Indonesia in 2011 overtook
Australia to become the world's largest exporter
of coal by weight. Though the bulk
of the country's mined coal is exported,
the government has encouraged coal-fired
power generation by setting a 20% domestic
market obligation for producers and
5. Installed capacity, 2011. In 2011,
Indonesia's installed power capacity amounted
to 39.9 GW, the bulk (16.3 GW) of which
was steam (coal-, oil-, and gas-fired) power.
The nation also had 5.5 GW of diesel capacity,
more than hydro's 3.9 GW share. About
1.25 GW of nameplate renewable capacity-including
geothermal, wind, solar, and
mini and micro hydro-had been installed.
Source: Handbook of Energy and Economic
Statistics of Indonesia (2012)
Geothermal 3%
Gas engine 1%
Hydro 11%
Combined
cycle 12%
Simple
cycle 12%
Diesel 15%
36
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POWER | July 2013
Steam 46%
Other renewables <1%
Coal gasification <1%
Waste <1%
touting use of its relatively abundant domestic
supplies as one way to reduce dependence
on expensive diesel and fuel oil.
However, most projects outlined by
PLN's plan to install at least 35.6 GW of
new coal-fired capacity by 2020 have been
plagued by delays. About 17 coal plants
(almost 3 GW) are under construction. At
least 10 of these 17 (a total of 1,700 MW),
most in Kalimantan and the eastern part
of the country, are expected to come online
this year, while the remaining seven
should be completed next year. Construction
on another 10 coal-fired plants with
a total capacity of 2.4 GW will also begin
this year, PLN indicates, including those
in Pacitan, East Java (630 MW); Pelabuhan
Ratu, West Java (1,050 MW); Barru,
South Sulawesi (100 MW); and Nagan
Raya in Aceh (220 MW).
Last year saw the completion of two
new 660-MW units at the Tanjung Jati B
power plant in Central Java (a POWER
Top Plant-see the October 2012 issue).
The 815-MW PTLU Paiton Unit 3, a supercritical
plant in East Java, also came
6. Banking on coal. To ensure economic growth, Indonesia projects it will need to
develop at least 55.1 GW of new power plant capacity by 2020. State-owned utility PLN will
add at least 31 GW, while independent power producers are expected to add another 24
GW. At least 65% of the new additions will be coal-fired, while about 12.2 MW will be from
renewables. Source: PLN
7. At the top of the heap. At least 17 new coal-fired power plants with a combined
capacity of about 3 GW are under construction in coal-rich Indonesia. In July 2012, Japanese
firm Marubeni Corp. and partners Indika Energy, Korea Midland Power Co., and Santan Co. began
commercial operation of the single-unit 660-MW PT Cirebon Electric Power station, shown
here. The $877 million plant in West Java was built under the independent power producer
program. A second unit at the site is being discussed. Courtesy: Marubeni

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POWER July 2013

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