The investment of US$1.82 billion, or 18.9 percent of the target of US$9.91 billion, is relatively small.
Jakarta (ANTARA) - The realization of investment in the electricity sector reached US$1.82 billion (Rp26.19 trillion) in the first quarter of 2021, accounting for 18.4 percent of the target of US$9.91 billion, a senior official said.

"The investment of US$1.82 billion, or 18.9 percent of the target of US$9.91 billion, is relatively small,” director general of electricity at the Energy and Mineral Resources Ministry, Rida Mulyana, said here on Friday.

The COVID-19 pandemic has hindered the entry of expatriates, equipment, and materials, thus leading to a delay in the realization of construction work, he explained.

Apart from that, low power demand coupled with a drop in the financing capacity of state electricity company PT Perusahaan Listrik Negara (PT PLN) due to a decline in electrical power sales to non-subsidized subscribers have also added to the delay, he added.

"Why has the target not been achieved? This is because the COVID-19 still hampers the mobility of people and equipment. Accordingly, it slows down the movement of the dollar and caused its realization like this," he said.

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The projects realized as of April this year include a US$1.01-billion power plant, a US$340 million transmission project, a US$180 million substation and a US$290 million distribution project.

"We still have time to drive the realization of the investment so that the electricity sub-sector can contribute to achieving the national investment target," Mulyana said.

To increase investment, the government will further ease the entry of expatriates and equipment by issuing certificates for national strategic projects, settling land clearance, and negotiating contracts between PLN and private electricity companies to extend commercial cooperation dates (CCD), he informed.

The government will also make an effort to boost power demand by coordinating efforts to accelerate the potential for power demand in special economic zones, industrial estates, national strategic tourism zones, and integrated marine and fishery centers, he added.

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Translator: Sugiharto Purnama/Suharto
Editor: Rahmad Nasution
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