Jokowi’s Order: PLTU Early Retirement Will Be Executed This Year! News – 8 hours ago

Jakarta, CNBC Indonesia – President Joko Widodo (Jokowi) ordered that this year there will be at least one coal-fired steam power plant (PLTU) that can be guaranteed to be retired early.

Secretary General of the Ministry of Energy and Mineral Resources (ESDM) Dadan Kusdiana said that his party is planning an early retirement program for coal PLTUs at 2 PLTUs, namely PLTU Pelabuhan Ratu and PLTU Cirebon-1.

However, between the two PLTUs, it is still being decided which one can be executed first.

Dadan explained that for the Cirebon-1 PLTU itself, there was a commitment to support from the Asian Development Bank (ADB) to realize the accelerated cessation of PLTU operations. Meanwhile, the Pelabuhan Ratu PLTU is planned to have a transition process from PT PLN (Persero) to PT Bukit Asam Tbk (PTBA).

“We are still looking at which two, but we want, because of the President’s direction, to have one project executed this year. Execution is a transaction, don’t mean that it is closed this year,” said Dadan at the Ministry of Energy and Mineral Resources Building, Jakarta. , quoted Wednesday (25/10/2023).

Previously, Deputy Chairman of Commission VII DPR Eddy Soeparno revealed that, at least to realize the cessation of operations of the two PLTUs, the funds needed reached IDR 25 trillion. In detail, the Pelabuhan Ratu PLTU is IDR 12 trillion and the Cirebon-1 PLTU is IDR 13 trillion.

“The APBN is not possible, it is not strong enough to cover early retirement. This must have other sources which we know there are sources from JETP. We also know there is support from ADB to carry out early retirement, we know that currently there is an early retirement for PLTU Pelabuhan Ratu and PLTU “Cirebon requires funds of IDR 25 trillion,” he said in the Energy Corner event, CNBC Indonesia, Tuesday (24/10/2023).

Therefore, there is a need for other funding sources that can be used to support this PLTU early retirement program. For example, funding through the Just Energy Transition Partnership (JETP) scheme and support from the Asian Development Bank (ADB).

“For Cirebon-1, there is already a commitment from the ADB to finance it. Well, this is very big, just two PLTUs,” he said.

As is known, the Ministry of Finance has just issued Minister of Finance Regulation (PMK) Number 103 of 2023 concerning Providing Fiscal Support through the Funding and Financing Framework in the Context of Accelerating the Energy Transition in the Electricity Sector.

Through this new regulation, financing related to the cessation of operations of a number of Steam Power Plants (PLTU) faster than the initial plan, aka early retirement, will use the APBN.

[Gambas:Video CNBC]

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