KAWASAN INDUSTRI KENDAL: Government Supports Electricity Availability

November 05, 2017

The Ministry of Energy and Mineral Resources (ESDM) will prioritize the availability of electricity in the Kendal Industrial Estate, Central Java to encourage investment and industrial growth while increasing local employment. Electricity is considered a crucial factor to accelerate the flow of investment, especially in the regions.

Alihuddin Sitompul, Director of Electricity Program Development at the Directorate General of Electricity at the ESDM Ministry, said the government does have a duty to encourage economic growth including accelerating investment flows. "The effort is carried out by providing electricity for various economic and social activities. Especially in the industrial area, "he said in a release on Wednesday (1/11).

According to him, Kendal Industrial Area is one of the productive points of investor activity. "That is a special area whose electricity needs are met by holders of electricity permits in the region. The government will support it, "he said.

Agus Triboeseno, Secretary of the Directorate General of Electricity, Ministry of Energy and Mineral Resources, assessed that the industrial estate will have a large economic impact, especially for the region concerned. Therefore, the availability of electricity is a vital infrastructure in an industrial area. "Even so, the industrial area is a special area whose electricity needs are met by license holders," he explained.

According to him, the presence of an independent power plant in the industrial area can be of wider benefit if the results are sold to PT PLN (Persero). "As long as the electricity is sold to PLN, it will help accelerate the government's program in procuring 35 thousand Megawatts," he said. To that end, Agus encourages independent electricity generation in industrial estates to synergize with PLN to produce wider benefits.

The statement of the two top ESDM Ministry officials was also considered to accommodate the aspirations of the Central Java DPRD (Central Java) which on Wednesday (10/31) held a consultation meeting on electricity supply in the Kendal industrial area. The consultation meeting was held at the Directorate General of Electricity at the Ministry of Energy and Mineral Resources.

Central Java Provincial DPRD Commission D Chairman Alwin Basri revealed that without optimal energy guarantees, investors would think again reinvesting in industrial estates. Therefore, it must be ensured that electricity supply can provide excellent service.

According to him, the Central Java DPRD Commission D encouraged the acceleration of the development of the Kendal Industrial Zone with conducive and easy regulation. This must also be supported by the government including the availability of adequate infrastructure, including the availability of electricity because electricity is an industrial need. In addition to the amount, the quality of electricity must also be maintained.

"It can only be done by regional developers who certainly collaborate with PLN. And the council encourages that this collaboration can be done so that the development of the Kendal Industrial Estate can be realized immediately by the people of Central Java. The DPRD supports the ease of regulation," Alwin said.

He asserted, as long as the development of the region is for the development of Central Java, the Council must support. This is in accordance with the governing regulations and regulations. Alwin added that the Central Java DPRD Commission D had received a letter from the Governor of Central Java regarding electricity pricing in the Kendal Industrial Estate. "The price of electricity in industrial areas is indeed determined based on the governor's regulation with the approval of the DPRD," he explained.

Head of Electricity Division of ESDM Department, Central Java Imam Nugraha, revealed, based on Law No. 30/2009 and Regional Regulation No. 8/2012 which regulates electricity, industrial estates are indeed allowed to provide independent electricity at a rate determined by the governor through the approval of the DPRD.

"In Central Java, Kendal Industrial Estate will be the first to implement the regional electricity tariff. This will be a pilot and we will apply it to others later," he explained.

Imam also revealed that the proposed electricity tariff in the Kendal Industrial Area before the power plant was built was Rp 1,451 per kwh. While after the power plant is available, the tariff will be Rp. 1,287 per kwh. Electricity tariff from PLN itself is IDR 1,352 per kwh. That price can change if the price of fuel changes.