Govt to spin-off aging coal-powered power plants owned by PLN
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Kontan - Pemerintah Akan Spin-Off PLTU Uzur Milik PLN
08 October 2021
By: M. Krishna Prana Julian
Jakarta. The State-owned Enterprise (SOE) Ministry is aggressively restructuring PT Perusahaan Listrik Negara (PLN). After merging PLN’s geothermal assets with Pertamina Group, now, the government will collect aging coal-fired power plants (PLTUs) into one subsidiary.
On several occasions, SOE Minister, Erick Thohir, reminded PLN’s debt had reached Rp694 trillion. Hence, PLN’s assets are continuously organised to not burden the electricity company.
Special Staff for the SOE Minister, Arya Sinulingga, said that spinning off old PLTUs would make asset management more efficient.
“Spinning off [the PLTUs] will be more efficient as the management will be easier and we predict the assets will be able to operate for 30 more years, and they will still produce profit,” he revealed to the media during a virtual talk show on Tuesday (5/10).
Registering old PLTUs
Arya explained that the spin-off would target old PLTUs that meet at least two of three criteria.
The three criteria are PLTUs that are old and not as efficient, have an availability factor of less than 80% in the last five years, and have a capacity factor of less than 50% for the next five years. “So, they are not PLTUs in great condition,” Arya added.
He said that the SOE Ministry was registering PLN’s PLTUs that meet the criteria.
Arya affirmed that the old PLTU spin-off plan did not contradict PLN’s plan to stop PLTU operation and to pursue their net zero emission vision by 2060.
PT PLN Spokesperson, Intan Fahdiana, revealed that PLN was ready to support and implement the decision of shareholders to improve the company’s performance.
“PLN is ready to support and implement the decision of shareholders that will improve the company’s performance,” Intan revealed to Kontan on Thursday (7/10).
On a separate occasion, House of Representatives (DPR) Commission VII Deputy Chairperson, Eddy Soeparno, revealed that his agency wanted to know more about the motivation behind PLN’s old PLTU spin-off plan.
Economist and Centre of Economic and Law Studies (Celios) Director, Bhima Yudhistira, reckoned that spinning off old PLTUs could contradict PLN’s vision to stop PLTU operation and pursue net zero emission by 2060.
According to Bhima, PLN’s old PLTU should be deactivated or liquidated. “If the purpose is to attract funds from investors with old PLTUs, then questions will be raised. Are investors interested in investing in old PLTUs?” Bhima told Kontan on Thursday (7/10).
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