PLN Will Supply Electricity For PT Bintan Alumina Indonesia Until 2050

Photo: Doc. Antara

JAKARTA - PT PLN (Persero) collaborates with the industrial sector through the Signing of Understanding (MoU) with PT Bintan Alumina Indonesia (BAI). With this agreement, PLN will supply electricity for aluminum exploration in the Galang Batang Special Economic Zone (SEZ), Riau Islands. PLN Regional Business Director and Kalimantan Adi Lumakso conveyed that this MoU is PLN's commitment to support the industrial sector, especially mining. Along with the easing of the pandemic, he hopes that the synergy of these government-privates can revive the community's economy. "The PLN-PT BAI MoU is in order to prepare electrical energy for the aluminum mining industry. PLN is committed to providing sufficient energy to be able to develop the industrial sector. Hopefully, it can spur economic growth nationally," Adi said in an official statement, Saturday, September 3. Adi explained that in cooperation PLN will provide electricity of 1,300 megawatts (MW) for PT BAI until 2050. The supply will be carried out in stages, namely 300 MW in 2026, 500 MW in 2027, and 1,300 MW in 2029-2050. In this provision, PLN will prioritize the power supply of new and renewable energy-based plants (EBT) whose potential is very large in Sumatra. "Currently, PLN's electricity supply for the Sumatra region is capable of a power surplus of 1,710 MW. As the EBT generating capacity increases in 2026, there will be sufficient power that can be absorbed by mining circles in Sumatra," Adi explained. President Director of PT BAI Santoni welcomed the signing of this memorandum of understanding because it will help the aluminum utilization industry in the Galang Batang SEZ. Especially for PT BAI which will build an aluminum smelter with a production capacity of 250 thousand tons of aluminum per year. "This collaboration will be mutually beneficial. The aluminum and derivative industries require a large amount of electrical energy. Especially for the Galang Batang SEZ, we will need 2,850 MW in the near future," said Santoni. Santoni continued in providing electrical energy, PT BAI will follow the government's regulations to use EBT-based electricity. So the MoU with this PLN, according to him, is an alternative to providing EBT for PT BAI. "Hopefully, through this MoU, PLN can provide reliable and economical electricity supply. Hopefully, the realization of this collaboration can build productive smelters for the downstreaming of aluminum derivative industries and various other industries that will be present in the Galang Batang SEZ," explained Santoni. General Manager of PLN Riau and Riau Regional Main Unit Agung Murdifi consider this momentum an opportunity for both parties to increase the supply and use of EBT in the industrial sector. Until July 2022, the PLN EBT mix for the Sumatra region was 27.94 percent or equivalent to 2,427 MW with the majority using water energy (PLTA). "This memorandum of understanding is proof that PT BAI is very committed to the supply of industrial electricity from EBT. This is in accordance with the government's stipulation to reach 23 percent of the NRE mix in 2025. This commitment to clean energy is certainly our shared obligation," concluded Agung.