Association Of Electricity Producers Confesses Development Of Non-Bankable Power Plants

Chairman of the Association of Indonesian Private Electricity Producers (APLSI) Arthur Simatupang. (Photo: Special)

JAKARTA - President Prabowo Subianto is known to target 75 GWs of new and renewable energy plants (EBT) by 2040.

Responding to this, Chairman of the Association of Indonesian Private Electricity Producers (APLSI) Arthur Simatupang said, actually in terms of the source of the EBT plant, Indonesia's potential is very abundant.

The reason is, Indonesia is passed by the ring of fire or the Pacific ring of fire which causes Indonesia to have the potential for geothermal energy.

However, Arthur complained about the low investment and funding of the EBT plant.

"In terms of supply, it is not a problem in Indonesia. What we need to improve is how to make existing projects become bankable or financeable," he said in the Energy Corner quoted Wednesday, December 11.

Arthur said that power generation entrepreneurs need the support of funding institutions so that the EBT power plant project is more attractive to be worked on quickly.

"So that these projects become more attractive so that financial and sponsoral institutions both from Indonesia and sponsoral institutions from the world can see this as something that can be low hanging fruit," explained Arthur.

Furthermore, Arthur explained, regarding the potential of EBT, Indonesia has great potential in the field of geothermal energy, especially on the island of Sumatra d, Java Island.

Indonesia, he said, also has other EBT sources whose potential has not been properly mapped, such as the Bayu Power Plant or wind.

"We know that like the wind power plant in Jeneponto, South Sulawesi can be replicated again because Eastern Indonesia has the potential for developing EBT in terms of wind power sources," said Arthur.