The state-owned electricity company PT PLN (Persero) signed a framework agreement with Savills (UK) Limited and NV VOGT Singapore Pte. Ltd. last week on plans to develop solar power plants (PLTS) wort Rp 360tn (US$ 19 billion) in a number of regions in eastern Indonesia. The cooperation was agreed upon during Indonesian President Joko “Jokowi” Widodo’s visit to Europe from April 17 to 23, 2016.
The agreement signed by PLN’s Corporate Planning Director Nicke Widyawati sees the solar power plans to hold a total capacity of 150 MWp. With the project, PLN follows one of it’s main priorities lying with renewable energy in eastern Indonesia. The plants are supposed to optimize the utilization of the Domestic Component Level (TKDN) in equipment, assembling, as well as the operation and maintenance services. According to a press release by Nicke Widyawati to Bisnis.com on Sunday, April 24, 2016, the company also concentrates on increasing electrification ratio in eastern Indonesia with focus on the utilization of new and renewable energy.
BKPM Chief Franky Sibarani said on Monday, April 25, 2016, that overall 10 to 13 business negotiations have been made during Jokowi’s visit to the United Kingdom (UK) last week with investments made for example also by pharmaceutical company Glaxo Smithkline (GSK). According to Franky, the total investment value reached in the UK is US$ 19.02 billion (tempo.co) With the solar power plant agreement, Indonesia is on its way to increase its use of renewable energy sources. The government aims at generating 26% of its energy from renewable sources by 2025.