Investment in electricity reaches 18% of target in Q1

The investment of $ 1.82 billion, or 18.9% of the target of $ 9.91 billion, is relatively small.

Jakarta (ANTARA) – Electricity sector investment achievement reached $ 1.82 billion (rupees 26.19 billion) in the first quarter of 2021, or 18.4% of the target of 9.91 billion dollars, said a senior official.

“The investment of 1.82 billion dollars, or 18.9% of the target of 9.91 billion dollars, is relatively small,” the director general of electricity at the energy ministry said on Friday. and Mineral Resources, Rida Mulyana.

The COVID-19 pandemic has hampered the entry of expatriates, equipment and materials, causing a delay in the completion of construction works, he explained.

Apart from this, the weak demand for electricity coupled with a decrease in the financing capacity of the national electricity company PT Perusahaan Listrik Negara (PT PLN) due to a decline in electricity sales to unsubsidized subscribers also compounded the delay, he added.

“Why was the target not met? It is because COVID-19 still impedes the mobility of people and equipment. As a result, it slows the movement of the dollar and caused its realization as that, “he said.

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Projects completed in April of 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. of US dollars.

“We still have time to drive the realization of the investment so that the electricity sub-sector can contribute to the achievement of the national investment objective,” Mulyana said.

To increase investment, the government will further facilitate the entry of expatriates and equipment by issuing certificates for national strategic projects, regulating land clearing and negotiating contracts between PLN and private power companies to extend contracts. trade cooperation dates (CCD), he informed.

The government will also strive to boost the demand for electricity by coordinating efforts to accelerate the potential for electricity demand in special economic zones, industrial zones, national strategic tourism zones and integrated marine and fishing centers, he added.

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