news     May 18, 2020

PLN and SMI Sign MoU on the Development of New and Renewable Energy (EBT) Based on SDG

PT Perusahaan Listrik Negara (PLN) and PT Sarana Multi Infrastruktur (SMI) signed a Memorandum of Understanding (MoU) in the joint development of the New and Renewable Energy (EBT) platform based on the Indonesia One Sustainable Development Goals (SDG) platform.

Finance Director of PLN Sinthya Roesly revealed, this collaboration was one step in synergy between SOEs between PLN and SMI to realize government targets in accordance with Government Regulation (PP) Number 79 of 2014 concerning National Energy Policy.

“And PP No. 22 Year 2017 concerning the National Energy General Plan, namely the achievement of an EBT mix of 23% by 2025,” Sinthya said in a written statement received by, Saturday (5/16).

Meanwhile, the signing of this MoU has been carried out circularly by PLN President Director Zulkifli Zaini and SMI President Director Edwin Syahruzad, Thursday (5/14).

According to Sinthya, this is also part of Indonesia’s participation in the 2030 Agenda launched by the United Nations (UN) to reach 17 Sustainable Development Goals (SDG).

One of the targets is affordable and clean energy, which is ensuring the availability of access to affordable, reliable, sustainable and modern energy for all people by 2030.

In addition, the greenhouse gas reduction target is 29% by 2030, where the energy sector is targeted to contribute 314 million tons of carbon dioxide (CO2) gas. In this effort, the Government through the Ministry of Finance has established a “SDG Indonesia One” platform to mobilize public and private financial resources through joint financing schemes.

This was done to fund infrastructure projects related to the achievement of SDGs, including EBT development projects in the electricity sector. “This collaboration for PLN and SMI is the implementation of the strategic initiatives of the two companies,” he added.

As a red stun company, PLN on 21 April 2020 has just launched the PLN Transformation program, one of which is the green initiative, which PLN will encourage and accelerate the execution of the EBT program in Indonesia.

On the other hand, SMI implements the Indonesia One SDG platform, which includes four types of pillars, namely: (i) Development Facilities, (ii) De-Risking Facilities, (iii) Financing Facilities, and (iv) Equity Funds.

The scheme characteristics are suitable for the needs of EBT development in Indonesia which so far has encountered several obstacles. Among others, the high risk of exploration and development, project bankability, tariff schemes and project financing schemes.

Therefore, the synergy of PLN and SMI is very appropriate to encourage the achievement of Government targets for affordable and clean energy SDGs.

In the Electricity Supply Business Plan (RUPTL) for 2019-2028, the plan to increase the capacity of the EBT generator is 16,765 GW, of which 3,459 MW will be implemented by PLN. Of this amount, with the cooperation of PLN and SMI it is planned to build an EBT plant of 1,403 MW.

Consisting of 904 MW of hydropower, 360 MW of PLTP, 100 MW of PLTB, 38.2 MW of PLTM and 1.3 MW of PLTS. The majority of the capacity (55.5%) of EBT plants will be built in Eastern Indonesia (783 MW) which is very rich in EBT potential. The details, in the Maluku region of Papua at 111 MW, Nusa Tenggara at 25 MW, Kalimantan at 496 MW and Sulawesi at 146 MW.

The total construction value of the EBT power plant project is estimated at US $ 4.29 billion or around Rp 64.35 trillion. As a pilot project of the cooperation between PLN and SMI, there are planned to be three projects to be executed in 2020, namely Geothermal Power Plant, Hydro Power Plant and Bayu Power Plant.

In addition, there are also other EBT projects that will be collaborated by both parties in the years to come.


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