Figure 1. On the podium, Dr. Andy Noor Sommeng (the current General Director of Electricity, Ministry of Energy and Natural Resources) discussed government policies on electricity. The other speakers sitting from left to right: Dr. Armand Hermawan (Director of Finance of Indonesia Infrastructure Guarantee Fund (IIGF), Dr. Armand Hermawan (Director of Finance of Indonesia Infrastructure Guarantee Fund (IIGF), Dr. Harris Hardiv Situmeang (Indonesia National Committee Chairman for the World Energy Council), Mr. Syamsul Huda (Director of Business of PT PLN Persero Regional Sulawesi), and Mr. Ir. Jarman Sudimo, MSc. (the General Director of Electricity, Ministry of Energy and Natural Resources in 2015) as a moderator.
The fourth panel of the Energy and Mining Expo 2017 was held on September 27, 2017. The topic of this panel is on electricity. Mr. Ir. Jarman Sudimo, M.Sc (General Director of Electricity, Ministry of Energy and Natural Resources in 2015) moderated the panel with the following speakers: Dr. Andy Noor Sommeng (the current General Director of Electricity, Ministry of Energy and Natural Resources), Mr. Syamsul Huda (Director of Business of PT PLN Persero Regional Sulawesi), Dr. Armand Hermawan (Director of Finance of Indonesia Infrastructure Guarantee Fund (IIGF)) and Dr. Harris Hardiv Situmeang (Indonesia National Committee Chairman for the World Energy Council).
Dr. Andy Noor Sommeng, as the current General Director of Electricity, Ministry of Energy and Natural Resources, addressed the governance policy regarding electricity and government programs after electricity deregulation in the year 2017. Efforts to increase Electrification Ratio (ER) are done through the addition of electricity infrastructures, the pre-electrification programs, and business development in the provision of electrical power on a small scale. The-35 GW program proclaimed by President Jokowi is aiming not only to increase economic growth but also to increase ER and the reliability of the electrical system. There is an improvement in the program as there is increase coverage from 72,141 villages with electricity in 2016 to 73,149 villages up to August 2017. Besides this program, the government through the Ministry of Energy and Mineral Resources focuses on equity and electricity affordability by making the right application on subsidy target, simplify licensing and implement an online system for investors.
Mr. Syamsul Huda, the Director of Business of PT PLN Persero Regional Sulawesi, presented investment conditions and infrastructure funding for electricity. He talked about PT PLN Persero, which has done the realization of investments to increase the amount of asset generation, transmission, substations, network distribution, and customers. He mentioned that the strategy of PT PLN Persero is to have a sufficient funding and considerable investment within the next ten years. This is to achieve the target in the Energy Business Plan Electricity year 2017-2026. He also stated that up to August 2017, the national electrical conditions during the highest peak have no blackouts because of power surplus. Even a lot of areas has considerable reserves. In relation to the program of 35 GW, the composition of 20.8 GW plans to consist of coal-fueled power plants, 11.9 GW of gas-fueled, and 2.9 GW of renewable energy (with the composition of renewable energy of 2.2 GW of hydropower, 0.5 GW of geothermal power and 0.2 GW using other sources of renewable energy). This program is supported by special rules, which include the development of 191 power plant projects throughout Indonesia. Out of the total number of national projects, 9.6 GW will be managed directly by PT PLN Persero (83 projects), while the private companies will participate in the amount of 26 GW (108 projects).
Dr. Armand Hermawan, Director of Finance of Indonesia Infrastructure Guarantee Fund (IIGF), discussed financing strategies and implementation scheme of electricity infrastructure projects guarantee facilities. He provided an example of the successful electrical project with a steam power stationed in Batang (the Central Java Power Plant). The Indonesia Infrastructure Guarantee Fund (IIGF) has already a treaty Guarantee Agreement (GA) with Bhimasena Power for the construction of the plant. The structure of guarantee between IIGF and the government implements the concept of “Amount of Sharing” with the publisher agreement by the Ministry of Finance. The purpose of this guarantee is to assure the cooperation of the government and business entities/private infrastructures.
The final speaker of the panel is Dr. Harris Hardiv Situmeang, the Indonesia National Committee Chairman for the World Energy Council. He discussed challenges, opportunities, and strategy optimization of renewable energy in the power system. He said that the electricity generation sector is projected to be the largest contributor of emissions, followed by industrial sectors and transportation sectors. Therefore optimization of renewable energy should include options for nuclear power. Referring to the Paris Agreement, it is important to understand that an increase in the global average temperature should be well below 2°C for pre-industrial levels and limit the temperature increase to 1.5°C above pre-industrial levels. Such efforts could significantly reduce the risks and impacts of climate change, for example, efforts to use renewable energy. There are many different paths to optimize renewable energy in the electricity system including the integration of renewable energy into long-term capacity expansion and grid expansion plans, i.e., the integrated grid benefit-cost analysis framework for microgrids to guide the technology selection and sizing the deployment of variable renewable energy assets for a given set of microgrid goals.