Currently, most of the electricity supply for Java-Bali is provided by private companies. This situation is not ideal since PLN is a corporation that is mandated by the state to manage the electricity sector
Jakarta (ANTARA) - PLN, the state-owned electric company, should be more active in building its own power plants instead of relying on private electric companies. according to a member of the Commission VII of the House of Representatives (DPR), Mulyanto.

"Currently, most of the electricity supply for Java-Bali is provided by private companies. This situation is not ideal since PLN is a corporation that is mandated by the state to manage the electricity sector," Mulyanto noted in a statement here on Friday.

The House member opined that if private companies dominate the electricity sector, then this could lead to a situation wherein the electricity bill or subsidy of the electricity sector would be controlled by private companies.

He urged PLN to make efforts to build power plants through capital collaboration and mutually beneficial profit-sharing scheme.

The legislator deemed this step as being safer than relying on private companies.

He asserted that PLN's integrated scope of work in generating, transmission, and distribution must be maintained and also strengthened to boost resiliency, independency, and sovereignty of the national energy.

PLN should also prioritize building profitable eco-friendly power plants, he added.

"Thus, PLN can clear its debts as well as slowly but surely return to dominate the power plant sector," Mulyanto affirmed.

To this end, he has welcomed PLN’s collaboration with several capital institutions in building the Terapung Cirata Solar Power Plants in Purwakarta, West Java.

The eco-friendly electricity project has received funding support from various international finance institutions: Sumitomo Mitusi Banking Corp, Societe Generale, and Standard Charter Bank, with investment value of US$129 million.

The solar power plant will be entering its construction phase for a period of 18 months and is targeted to become commercially operational by November 2022.


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Translator: M Razi Rahman, Fadhli R
Editor: Fardah Assegaf
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