Indonesia's electricity industry.

Backgrounds

The country's electricity sector has grown over the past years although not as fast as the leapfrogging increase in demand for power. In the past five years, power production of the state electricity company PT Perusahaan Listrik Negara (PLN) as the power procurement agency totaled 133,109 GWh in 2006, up to 160,786.21 GWh in 2010.

Meanwhile, the country's power requirement has increased 7% a year on the average. Shortages in power supply both in Java and other islands have caused frequent blackouts especially outside Java. The government has taken a big step to cope with the problem by launching crash program building power plants with a total capacity of 10,000 megawatts. The program succeeded in reducing blackouts notably in Java. According to plan, new power plants with a total capacity of 2,400 MW were to be completed in 2010 bringing the additional capacity to 4,300 MW from the coal-fired power plants on stream by that year to be built under the program.

However, PLN and its contractors found difficulties in meeting the target in 2010. Completion of a number of power generating projects were delayed such as PLTU Labuan Units 2, PLTU Rembang (Units 1 and 2), and PLTU Indramayu Units 1.

The country's electricity generation in the country is hampered by problem in supply of fuel especially coal and gas. With the soaring prices of oil, PLN has increased the use of coal and gas as the main fuels. However, gas supply is also a problem although the country is known to be one of the world's largest producers of gas In 2010, there were problems in gas supplies from Kalila to the PLTGU Teluk Lembu, from PGN to PLTGU Muara Tawar and PLTGU Talang Duku, from Pertamina to PLTGU Belawan and from SEMCO to PLTGU Semberah, forcing PLN to use more oil fuels.

In 2010, PLN has a total installed capacity of 26,895 MW. The largest in capacity is from coal-fired power plants (PLTU) with a total capacity of 9,452 MW, followed by steam and gas power plants (PLTGU) contributing 6,951 MW to PLN's total capacity, hydropower plants (PLTA) accounting for 3,523 MW of the total capacity , etc. PLN has 5,541 power generating units with diesel power plant (PLTD) contributing the largest number of 4,637 units or 83.7%, followed by PLTA 381 units (6.9%), PLTG 178 units (3.2%), PLTU 161 units (2.9%) , etc.

With the country's economy expanding 6%-7% annually in the past several years, as against power production growth of only 6.28% new power plants are needed to increase the capacity to prevent shortage in supply that will hamper the economic development. Demand for electricity is expected to grow faster with the economic growth especially industrial growth and growing population.

In the past several years, there are many hurdles delaying implementation of power generating projects notably shortage of gas supply to fuel the facilities. Many power plants after having their fuel converted from oil to gas have to use the expensive oil fuel again.

In a bid to cope with shortage of power supplies, in 2006 the government launched what is called crash program to build coal-fired power plants with a total capacity of 10,000 MW. A number of new power plants were already operational in 2009 under the first program. The rest are to be completed by 2011.

The energy and mineral resources minister has said Indonesia still needs 35,000 MW of electric energy 35.000 MW until 2015. In order to forestall electricity crisis, PLN has launched a program to boost investment in power generating plants using renewable fuel. Independent Power Producer (IPP) is also urged to speed up implementation of their power projects.

Management of electric power systems in Indonesia

In line with the Law no 15/1985, PLN is the authority in the electricity sector. The state company is responsible for the procurement of electricity in the country. Electricity systems in the country are divided into a number of interconnections areas--Java-Bali system, Southern Sumatra systems (Riau, West Sumatra, Jambi, South Sumatra and part of Riau), Northern Sumatra systems (North Sumatra and Aceh). Other areas have no interconnections systems yet.

Java-Bali electricity systems

Java-Bali system is the largest electricity system in Indonesia supporting by a number of large power generating plants and load centers on the islands of Java, Madura and Bali. These systems have a number of power plants with a total capacity of. 22,236 MW connected with extra high voltage transmission lines of up to 500KV and high voltage transmission lines of 150 KV and 70 KV.

Transmission networks having extra high voltage of 500 KV have linked all power plants in Java with transmission networks along the northern coats of the island and are supported by transmission networks in the southern part of the island. The Java-Bali Interconnection system is operated by PLN Penyaluran (distribution) and load regulator center Pusat Pengatur Beban (PLNP3B) Java Bali.

All power plants in Java are put under PLN's subsidiaries--PT Indonesia Power and PT Pembangkit Jawa Bali (PT PJB)

PT. Indonesia Power has 8 power generating business units Suryalaya (3,400 MW), Priok (1,248.08 MW), Semarang (1,469.16 MW), Perak (864.08 MW), Bali (427.63 MW), Kamojang (375 MW), Mrica (306.44 MW), and Saguling (797.35 MW).

The Suralaya business units operate 7 units of coal-fired power plants (PLTU) including Units 1 to 4 each with a capacity 400 MW and units 5 to 7 with a capacity of 600 MW each bringing the total capacity of the business unit to 3,400 MW.

PT Pembangkitan Jawa-Bali (PJB) was established in 1995. PJB has 10 power generating units with installed capacity of 9,007.14 MW and assets valued at Rp 41.5 trillion. It has 2,203 workers. PJB has grown to become a world class electric energy producer in capacity, quality and effectiveness and services that meet the international standards. It units include PLTGU Gresik (2,259.18 MW), Muara Karang (1,208.58 MW), Paiton (800 MW), Paiton Baru (660 MW), Muara Tawar (920 MW), Cirata (1,008 MW), Brantas (281.38 MW), Indramayu (990 MW), Rembang (630 MW) and Pacitan (250 MW).

Sumatra's electric power systems integrated

With the completion of a 150-kV transmission line between Rantau Prapat-Kota Pinang-Bagan Batu 102 km long in July 2007 the electricity systems in northern Sumatra have been connected by a subsystem with the central and southern Sumatra's systems.

The electricity systems of the central-southern Sumatra will supply power up to 70 MW to the northern systems. The central-southern systems have a surplus of around 100 MW at day time.

With the connection between the northern and central-southern systems in Sumatra, the 150 kV high voltage transmission systems (SUTTI) are connected between Bandar Lampung and Banda Aceh, spanning a distance of 3,000 kilometers. The distribution of power in Sumatra, therefore, has improved.

The transmission of power through a 150kV transmission line from Kota Panjang Riau to Kota Pinang Rantau Prapat covers quite a long distance of 400 km. The transmission of the energy is not easy because the distance as the distance has effect on the voltage that when it reaches the northern Sumatra the voltage is only 70kV left.

Therefore, the Sumatra interconnection has not solved all problem of deficit in supply in the northern part of Sumatra.

Electricity systems in other islands

Interconnections in Kalimantan cover Central and South Kalimantan. Connection between South and East Kalimantan is still in the process. In long term target, there will be interconnections between West and East Kalimantan that one region could support other provinces when there is deficit in one region such as because of maintenance or other causes.

The electricity system in West Kalimantan is left behind in development. Currently Pontianak, the provincial city, is building a circular network that if any problem in one transmission line, power could be supplied from other transmission lines in the loop. Similar system is planned for other areas in West Kalimantan before interconnections are built in Kalimantan.

In East Kalimantan, there are a number of electricity systems. The largest is the Mahakam system covering Samarinda, Balikpapan, and Tenggarong, the municipal city of Kutai Kartanegara.

Apart from the Mahakam system, PLN has electricity networks of Bontang-Sangatta in the northern part of that province, the Melak system and Kota Bangun system for area around Kutai Barat and Kutai Kartanegara, and the Petung and Tanah Grogot systems serving customers in southern part of East Kalimantan. The largest the Mahakam system has 330,000 subscribers using 171.5 MW of electric power. The gas and steam powered electric plant of PLTGU Tanjung Batu is one of six power generating plants supporting the Mahakam systems supplying 180 MW for subscribers. Five other power generating units are diesel power plants.

Condition of power generating plants

In the five year period ending in 2010, PLN's installed capacity grew 2% per year on the average. In 2006, PLN's installed capacity totaled 24,846 MW, up to 26,895 MW.

According to the general plan of development of electricity 2010, there will be additional capacity of 6,248 MW from new plants bringing the total installed capacity of PLN to 32,388 MW in 2011.

The largest in capacity in 2010 were PLTU with capacity totaling 9,452 MW, followed by PLTGU 6,952 MW, PLTA 3,523 MW, PLTD 3,268 MW and PLTG 3,224 MW.

Installed capacity of PLN in the Java-Bali systems grew to 18,534.27 MW in 2009. Additional capacity came from the Unit I of PLTU Labuan in Banten with a capacity of 300 MW, the Unit II of PLTU Indramayu in West Java with a capacity of 330 MW.

Meanwhile, in other systems, additional capacity came from a number of new power plants such as in Kalimantan increasing the capacity of the systems outside Java-Bali to 7,102.43 MW in 2009.

Development of power plants

Number of power plants

The number of power generating plants has continued to increase to keep pace with growing requirement. In the five year period ending in 2010, the number of power plants rose from 5,039 units in 2006 to 5,541 units in 2010.

In March 2010, PLTU nit staring operation was PLTU Suralaya with a capacity of 625 MW, followed by the Unit I of PLTU Indramayu and the Unit 2 of PLTU Rembang in June that year. In December, 2010, PLTU Paitons with a capacity of 600 MW and Units 2 and 3 of PLTU Indramayu came on line.

PLTD is the largest in number totaling 4,637 units making up 83.7% of the total number of power generating plants, followed by PLTA totaling 381 units (6.9%), PLTG 178 units (3.2%), PLTU 161 units (2.9%), PLTGU 119 units (2.1%), PLTMG 43 units (0.8%) and PLT Bayu 3 units (0.05%).

Condition of Transmission Systems

The following table shows the capacity of distribution voltage regulators and distribution facility of the Java-Bali system in the past five years.

The capacity of voltage regulators of 70/20 KV has remained almost unchanged as 150 kV transmission networks are used more widely instead of 70 kV transmission networks.

In the past five years the length of 70 kV transmission lines has continued to decline with the replacement with ones of 150 kV which is higher in quality.

The balance in capacity between power plants and Transformer (IBT) and distribution transformers by voltage--500, 150 and 70 kV in the past five years in shown in the following table.

Transmission and distribution systems outside the Java-Bali interconnections have improved in the past five years notably in Sumatra, Kalimantan, and Sulawesi with the completion of a number of transmission projects. Other systems such as in Nusa Tenggara, Maluku, and Papua, however, have no transmission line yet.

Growth of electric power sector

Production of electricity up 6.28% per year

PLN's production of electricity including from its own power plants and power bought from Independent Power Producer (IPP) grew 6.28% per year on the average in the past five years.

In 2006, power production was recorded at 133,109 GWh, up to 169,786.21 GWh in 2010. The highest growth was recorded in 2010 when power production rose 8.28% from the previous year. Power production from diesel power generators rented to cope with short term problem in shortage of power supply contributed to the increase in power production in 2010.

PLN's program of renting power generators is a short term strategy to meet power requirement in certain areas.

In 2011, there are a number of such steps taken by PLN including renting PLTU from private investors mainly outside Java. PLN provides location coal fuel and transmission lines for the rented PLTU. The private investor provides power generator and operates it. PLN will buy he power produced by the generator.

Sales of electric power up 6.96% per year

Sales of electric power in Indonesia has increased 6.96% a year on the average in the past five years to follow the progress made in the country's economic development..

In 2006, sales totaled 121,609.84 Giga Watt hours (GWh),--up to 147,297 GWh in 2010. The increase followed growing number of subscribers. In 2010, the number of PLN's subscribers rose by 2,317,702 to 42.4 million. The increase in sales was also attributable to improved economic condition.

In the first half of 2011, PLN sets power sales target at 76,867.53 GWh.

Number of subscribers

The number of PLN's subscribers in the period of 2006--2010 grew 4.25% per year. In 2006, the number of subscribers totaled 35.9 million, up 4.86% to 37.7 million in 2007 to 38.6 million in 2008, to 40.1 million in 2009 and to 42.4 million in 2010.

Households were the largest in number among the subscribers in 2010. That year, there were 39.3 million household subscribers or 92.7% of the total number of subscribers. The second largest was the business sector totaling 1.9 million (4.5%), followed by social sector 2.1%, government offices 0.31%, street light 0.31% and industry 0.08%.

Electrification ratio

Electrification ratio is the ratio of houses in number to already having electric light to the total number of houses in the country. The ratio is still low at present although rising from 60.1% in 2006 to 66.1% in 2010. In Java the ratio is 72.2% higher than outside Java of 60.4%.

This year the ratio target is set at 70.4% for which PLN plans additional capacity of its power plants by 6,248 MW, under its crash program of building power plants with a total capacity of 10,000 MW.

Electricity crisis not yet over

Ideally peak load is not more than 70% of capacity or at the most the same as the capacity of the largest power plant, that when a 30% reserve is always available to forestall problem besetting a one of the largest power plants. However, it would not be easy to maintain an ideal position. The threats of blackout continue whenever a major power plant is out of function or under routine maintenance.

Despite the increase in power generating capacity in Java and outside Java, the threat of crisis in power supply is not yet entirely over. . In Java-Bali system the peak load rose to 19,486 MW in 2010 from 17,671 MW in 2009. The supplying capacity in 2010 was 19,000 MW down from 21,794 MW in 2009.

The condition of electricity systems in Java-Bali was in crisis in 2010 marked with the high peak load that reached 97.5 % of the supplying capacity. This means at the time of peak load, PLN could not meet power requirement that blackouts were needed by turn.

Meanwhile, outside Java-Bali the total installed capacity electricity systems in the past five years was 7,102.43 MW, the supplying capacity was 5,059.15 MW, and peak load was 6,220.04.MW.

Losses in Networks and Load Factor

In the five years period ending 2010, PLN's losses in networks declined. In 2010, the losses declined to only 9.7% from 9.93% in 2009. Meanwhile, load factor per year was between 64.15% and 80.8%.

Coal becomes the main fuel

The soaring prices of oil in the world market give greater importance to non oil sources of energy including coal, geothermal, natural gas, etc.

Coal requirement has increased sharply over the past several years--from 25.9 million tons in 2006, up 47.5% to 38.2 million tons in 2010.

However, dependence on oil fuel (BBM) has not been entirely over. Use of BBM fluctuates--from 9.1 million kiloliters in 2006, up to 10.4 million kiloliters in 2008, but down to 9.2 million kiloliters in 2010. PLN has to some extended succeeded in reducing the use of the expensive BBM by using more coal or other non BBM fuels. BBM consumption, however, remains high.

In 2010 consumption of BBM by PLN reached 9.2 million kiloliters far exceeding the target of 6.4 million kiloliters. Its coal consumption was lower than expected. Originally, PLN set coal consumption target at 38 million tons, but realization was only 34.2 million tons. Its gas consumption in 2010 reached 233,611 MMSCF.

In 2011, BBM requirement for diesel power plants is estimated to reach 10.38 million kiloliter or 21% of the fuel requirement. Meanwhile, PLN's coal requirement is forecast to reach 36.48 million tons or 46% of its fuel requirement. Gas requirement is estimated to reach 327.59 million terra British thermal units (BTU) or 21 % of its total fuel requirement.

In 2011, PPLN hopes to reduce the use of BBM for its power plants to reduce production cost. It's planned to cut BBM consumption by 1.5 million kiloliters from 10.38 million kiloliters in 2010. Actually PLN already reduced the use of BBM since 2009 by using more coal. Apart from saving funds, coal is environmentally friendlier than oil.

So far coal accounts for 40% of the total consumption of primary energy sources by PLN. It is expected the use of coal will continue to increase by PLN for its power generating plants. More coal will be needed in line with the additional supply of electricity by 5,000 MW planned in Java in 2011.

Program of diversification of primary energy

Based on the 2010-2019 RUPTL, 10 new power plants will be built for the Java-Bali system and 30 more units outside the systems. The 30 units outside Java-Bali include 14 units under main program and 16 units for reserves. If the private sector failed to carryout their plans as scheduled. In 2015, therefore, BBM generated power would not be more than 5% of the total production of electric energy.

In line with the government policy of seeking to reduce the use of BBM and possible delay in the operation of new gas fired power plants amid the shortage of gas supply for domestic consumption, the government has sought to diversify sources of energy with larger use of coal, and geothermal.

So far the operating cost of PLN has been determined more by the oil prices in the world market as coal prices also follow the oil price developments.

Outside Java-Bali, projects included in the program are planned power requirement in 2010 and 2011.

Subsidies provided by the government

The electricity tariff set by the government has always been below the operating cost of PLN. The tariff is always below expectation of PLN; therefore, PLN has always needed subsidy from the government. PLN as a the authority in electricity sector (PKUK) based on the Law No. 15/1985 and a state company, has what is called PSO (Public Service Obligation). With the selling price of electricity below production cost, the government has to provide subsidy. Subsidy for PLN every year has to be approved by the House of Representatives. The subsidy for PLN has increased form year to year to follow the growing power consumption in the country.

PLN said in its annual report in 2010, electricity subsidy in 2010 as set by the Law No 2 in 2010 based on the revised state budget for that year was set at Rp 53,606,300 million giving PLN a 8% margin. Realization of the subsidy, however, was larger at Rp 58,108,418 million.

The increase in realization was because power requirement was larger than expected. Delay in the completion of some projects under the 10,000 MW crash program resulted in largest use of BBM than expected. In addition here was problem cause by shortage in gas supply to some power plants

PLN also still had Rp 4.6 trillion not yet received in payment for the public service obligation it provided in 2009.

In 2011, subsidy on electricity is set at Rp 66.33 trillion. The subsidy was calculated on assumption that a US dollar was equivalent to Rp 9,200 and the price of Indonesian Crude Oil (ICP) was USD 85 per barrel

Power generating plants of IPP

Until the end of 2010, there were 24 power plants of independent power producers (IPP) already operational with a total capacity of 4,761 MW, or around 17.70% of the country's total installed capacity of 26,895 MW. Among the power plants of IPP, 10 units are in the Java-Bali systems with a total capacity of 3,997 MW, 5 units in Sumatra with a total capacity of 253 MW, 1 unit in Kalimantan with a capacity of 45 MW, 5 units in Batam with a total capacity of 181 MW, and 3 units in Sulawesi with a total capacity of 285 MW.

IPP projects delayed

Construction of a number of powers generating project shelved earlier was resumed after renegotiations. Meanwhile with the soaring prices of oil in the world market, big program was launched to build coal-fires and geothermal power plants. The government encouraged development of the country's huge geothermal reserves and construction of geothermal power plants by offering incentives. However, implementations of a number of major projects of IPP were delayed until 2011.

Projection of electric power requirement, 2011-2016

Every tear the government prepares National Electricity General Plan (RUKN) which include estimates of power requirement and provision, investment policy and sources of funds and policy in development of renewable energy sources.

Based on the RUKN, PLN prepares its own plan in the electricity sector as contained in its Electric Power Provision General Plan (RUPTL), which contains plans for development of power plants, transmission networks and distribution systems. The plan was drafted based on power requirement and the capacity of the existing power plants.

According to the RUPTL of 2010-2019, the country's electric energy requirement will increase from 161.1 TWh in 2011 to 233.7 TWh in 2015 or an annual growth of 9.75% on the average. Peak load is forecast to reach 28,796 MW in 2011 to rise to 41,916 MW in 2015 or an annual growth of 12.5% on the average.

Projection of power requirement is calculated on assumption of the country's economic growth in the period of 2011--2015 using the figures released by the National Development Planning Board (Bappenas). The country's economy was predicted to grow 6.2% annually in the next five years as shown in the following table.

The number of PLN's subscribers is forecast to reach 44.3 million in 2011, up to 54.5 million in 2015 or an annual growth of 5.3% on the average--growing 2.04 million per year. The increase in the number of subscribers will push up the ratio of electrification from 70.4% in 2011 to 79.5% in 2015. The country's population is predicted to grow from 238.2 million in 2011 to 248.3 million in 2015.

The ratio is 0.3 percentage point higher than the government's target as given in the RUKN in 2015. Based on the RUKN, electrification ratio is only 79.2% in 2015.

In the period of 2011-2015, power requirement in the Java-Bali system is forecast to rise from 125.2 TWh to 179 TWh or an annual growth of 14.3% on the average. The requirement in the eastern part of Indonesia is forecast to rise from 12.6 TWh to 19.1 TWh or an annual growth of 17.2 %.

Estimated of power requirement, according to the RUKN is lower. According to RUPTL of 2010-2016 growth of demand in the next ten years is forecast to rise from 8.8% to 9.4% in 2015.

Conclusion

Indonesia's per capita GDP has continued to increase--up 6%-7% a year resulting in an annual increase of 9.2% of power consumption. The increase in consumption necessitates additional power plants with a total capacity of 3,000 MW per year. In order to cope with the limited supply of power, PLN plans to build more power plants in the next five years to meet 75% of the country's total requirement with 25% of the requirement expected to be provided by IPPs. PLN also needs fund to build transmission and distribution networks.

The electrification ratio of 66.1% in 2010, shows that a considerable number of the people have not enjoyed electric illumination and energy. PLN and Pips, therefore, still need to build more electricity infrastructure.

In 2010, the country had power generating plants with a total installed capacity of 26,895 MW, including PLTU with a total installed capacity of 9,452 MW, PLTGU 6,951 MW, PLTA 3,523 MW and etc. The number of power plants totaled 5,541 units including PLTD 4,637 units accounting for 83.7% of the total number, PLTA 381 units (6.9%), PLTG 178 units (3.2%), PLTU 161 units (2.9%) and etc.

Soaring prices of BBM and the fact that the country still uses many oil-fired power plants result in high production cost that necessitates larger subsidies to be provided by the government if the selling prices are not raised. With the government's decision not to raise the electric rate in 2011, the electricity subsidy is estimated to reach Rp 66.33 trillion, up from Rp 53.6 trillion last year.

High BBM prices force PLN to use more gas as fuel, but the problem is there is no guarantee of gas supply causing interruption in the process of power production at PLTGU Teluk Lembu, PLTGU Muara Tawar and PLTGU Talang Duku, PLTGU Belawan and PLTGU Semberah. PLN, therefore, has to use more BBM.

In order to help cope with shortage of power supply the government is seeking to build power plants with cheaper operating cost? The government launched a crash program to build coal-fired power plants with a total capacity of 10,000 MW. The program is to be followed by a second crash program with the same total capacity. The first program is still in progress and completion has been delayed since 2010. Until 2010, a number of projects were not yet completed such as PLTU Labuan Units 2, PLTU Rembang (Units 1 and 2), and PLTU Indramayu Units 1.

Table--1
Development of PLN's installed capacity, 2006-2010

Year   Installed capacity (MW)   Growth (%)

2006           24,846                --
2007           25,222               1.5
2008           25,571               1.4
2009           25,607               0.1
2010           26,895               5.0
Rata-rata pertumbuhan               2.0

Source: RUPTL 2010

Table--2
Types of power plant and capacity
(MW)

Types of power plants     2006      2007      2008      2009      2010

PLTA                     3,529     3,501     3,504     3,508     3,523
PLTD                     2,954     2,968     3,020     2,980     3,268
PLTG                     2,727     2,783     2,496     2,570     3,224
PLTGU                    7,021     7,021     7,370     7,370     6,951
PLTP                       395       415       415       415       439
PLTU                     8,220     8,534     8,764     8,764     9,452
Total                   24,846    25,222    25,571    25,607    26,895

Source : PLN's annual report 2010

Table--3
Installed capacity of power plants in Java-Bali systems
And other systems, 2009

                                                    Capacity
    Islands                 PLN units                 (MW)

Java                                               18,534.27
Sumatra           NAD                                 155.20
                  North Sumatra                        15.66
                  West Sumatra                         34.40
Sumatra           Riau and Riau islands               167.53
                  Bangka Belitung                     101.13
                  S2JB                                 54.20
                  Lampung                               8.03
                  Batam                               132.32
                  Plants in northern Sumatra        1,903.05
                  Plants in southern Sumatra        1,859.20
Kalimantan        West Kalimantan                     293.75
                  South Kalimantan and Central        394.27
                  Kalimantan
                  East Kalimantan                     461.23
                  Tarakan                              38.22
Sulawesi,         North Sulawesi, Central             358.03
  Maluku, Papua     Sulawesi, Gorontalo
                  South Sulawesi, West                517.93
                    Sulawesi, Southeast Sulawesi
                  Maluku, North Maluku                182.21
Bali              Bali Distribution                     3.69
Nusa Tenggara     West Nusa Tenggara                  139.58
                  East Nusa Tenggara                  112.09
Papua             Papua                               170.71
Total                                              25,636.70

Source: RUPTL 2008

Table--4
Number of units of power generating plant, 2006-2010

(Units)

Types of power plant                      Year

                        2006     2007     2008     2009     2010

PLTA                     203      196      189      201      381
PLTU                      43       45       48       49      161
PLTG                      60       54       58       63      178
PLTGU                     53       60       61       59      119
PLTD                   4,670    4,705    4,635    4,626    4,637
PLTP                       8        9        9        9       19
PLTMG                      2        2        2        4       43
PLT Bayu                  --        1        4        3        3
Total                  5,039    5,072    5,006    5,014    5,541

Source: PLN

Table--5
Development of the capacity of distribution voltage
regulators of Java-Bali system, 2007-2010

Description             2007      2008      2009      2010

150/20        (MVA)   26,790    29,010    30,060    31,040
70/20         (MVA)    2,918     3,038     3,078     3,248
Total         (MVA)   29,708    32,048    33,138    34,288
Peak load     (MW)    16,743    16,310    17,210    19,486

Source: Statistics of PT PLN (Persero)

Table--6
Transmission lines of PT PLN (Persero) P3B, 2007-2009

Description             2007         2008         2009

500 kV        (kms)    3,763        5,092        5,092
275 kV        (kms)   781.38       782.25     1,011.39
150 kV        (kms)   22,475    23,678.60    24,191.60
70 kV         (kms)    3,425     4,619.03     4,642.18

Sources: Statistics 2009 of PT PLN (Persero)

Table--7
Capacity of power plants and IBT transformers, 2006-2010

Voltage                   Unit     2006      2007      2008      2009

Kit 500 KV                MW     12,970    12,970    12,970    12,970
Transformers 500/150 kV   MVA    17,000    17,000    17,000    17,500
Power plants 150 KV       MW      8,890     8,990     9,010    10,110
Transformer 150/70 kV     MVA     3,580     3,500     3,580     3,820
Power plant 70 KV         MW        270       270       270       270
Transformers 150/20 kV    MVA    25,300    26,070    26,150    26,330
Transformers 70/20 kV     MVA     2,880     2,800     2,750     2,740

Sources: RUPTL 2010

Table--8
PLN's power production growth, 2006-2010

Year              Production (GWh)   Growth (%)

2006                    133,109.00           --
2007                    142,440.00         7.01
2008                    149,437.00         4.91
2009                    156,797.25         4.93
2010                    169,786.21         8.28
Growth per year                            6.28

Sources: PLN

Table--9
PLTU rented by PLN, 2011

    Power plants        Capacity (MW)        Location

PLTU Tarahan            2 x 150         Lampung
PLTU NTB                4 x 30          West Nusa Tenggara
PLTU Timika             2 x 15          Papua
PLTU Riau               2 x 150         Riau
PLTU Kuala Tanjung      3 x 150         North Sumatra
PLTU Teluk Balikpapan   2 x 150         East Kalimantan
PLTU Asam-Asam          3 x 65          South Kalimantan
PLTU Air Anyer *        2 x 30          Bangka
PLTU Barru *            2 x 150         South Sulawesi
PLTU Amurang *          2 x 30          North Sulawesi

Sources: ICN processed

Note : * auction was not yet in progress

Table--10
Electric power sales by PLN, 2006-2010

Year             Sales (GWh)   Growth (%)

2006              112,609.84          --
2007              121,241.83         7.67
2008              129,018.81         6.41
2009              134,581.98         4.31
2010              147,297.47         9.44
Average growth                       6.96

Sources: Statistics of PLN

Table--11
Number of PLN's subscribers by groups, 2006-2010

                                                     Social
Year             Households   Industry   Business    sector

2006             33,441,512    58,717    1,513,592   744,626
2007             35,069,525    61,570    1,587,152   780,814
2008             36,025,071    47,536    1,716,045   838,129
2009             37,099,830    47,900    1.879,429   861,067
2010             39,324,000    49,000    1,912,000   884,316
Average growth

                  Government       Street                   Growth
Year             institutions   Illumination     Total       (%)

2006                93,087         79,466      35,931,000     --
2007                97,611         83,328      37,680,000    4.86
2008               103,821        113,483      38.622.376    2.50
2009               114,971        114,488      40,117,685    3.87
2010               133,171        132,900      42.435.387    5.78
Average growth                                               4.25

Sources: Statistics of PLN, 2009

Table--12
Household electrification ratio, 2006-2010

Description   2006   2007   2008   2009   2010

Indonesia     60,1   61,6   63,3   65,8   66,1
Java-Bali     64,3   65,7   67,5   69,5   72,2
Sumatra       53,0   54,5   56,3   54,9   60,4

Sources: Statistics of PLN, DJLPE

Table--13
Growth of peak load in the Java-Bali systems, 2010

Description                                     Java-Bali     Systems
                                                 system       outside
                                                            Java-Bali *

Installed capacity                         MW     21,601      7,102.43
Supplying capacity                         MW     19,000      5,059.15
Peak load                                  MW     19,486      6,220.04
Ratio of peak load to supplying capacity   %        97.5          81.3

Sources: PT PLN (Persero)
* in 2009

Table--14
Losses in networks and load factor PLN. 2006-2010
(%)

Description    2006     2007     2008    2009    2010

Load Factor   64,15     76,5     80.8    77,7    70,7
Losses        11,45    11,08    10,67    9,93     9,7

Sources: Statistics of PLN 2010

Table--15
PLN's fuel consumption, 2006-2010

                  BBM (kiloliters)                            Natural
                                                     Coal       gas
YEAR     HSD       IDO       MFO        Total       (Tons)    (MMSCF)

2006  6,967,428  34,504   2,062,068   9,084,000   25,963,000  227,000
2007  3,968,809  45,920   1,146,271   5,161,000   31,415,000  296,000
2008  8,300,000      --   2,140,000  10,440,000   26,481,000  425,000
2009  6,365,116  11,132   3,032,656   9,408,904   21,604,463  266,538
2010  6,068,500      --   3,131,500   9,200,000   34,200,000  233,611

Sources: RUPTL 2010

Table--16
New non oil fired power generating projects in Java-Bali, 2009 and 2010

Power plants         Locations      Capacity (MW)         COD

                                 Units Size   Total   2009   2010

PLTU Labuan          Banten       2 x 300       600    300    300
PLTU Teluk Naga      Banten       3 x 300       900    600    300
PLTU Jabar Selatan   West Java    3 x 300       900    300    600
PLTU Jabar Utara     West Java    3 x 300       900    300    600
PLTU Jatim Selatan   East Java    2 x 300       600    300    300
PLTU Tj Awar-Awar    East Java    2 x 300       600     --    600

Sources: RUPTL 2006

Table--17
New non-oil fired power generating projects outside Java-Bali, 2010

Power plants           Locations                    Capacity (MW)

                                                  Units Size   Total

PLTU Meulaboh          NAD                         2 x 100      200
PLTU Pesisir Selatan   West Sumatra                2 x 100      200
PLTU Air Anyer         Bangka Belitung              2 x 10       20
PLTU Bengkalis         Riau                         2 x 7        14
PLTU Selat Panjang     Riau                         2 x 5        10
PLTU Lombok Baru       NTB                          2 x 25       50
PLTU Ambon Baru        Maluku                       2 x 15       30
PLTU Ternate           North Maluku                 2 x 17       14
PLTU Timika            Papua                        2 x 7        14
PLTU Amurang Baru      North Sulawesi               2 x 25       50
PLTU Medan Baru        North Sumatra               2 x 100      200
PLTU Sulut Baru        North Sulawesi               2 x 25       50
PLTGU Keramasan        Palembang, South Sumatra     2 x 43       86
PLTU Tarahan           Lampung                      2 x 50      100
PLTP Ulubelu           Lampung                                   55

Power plants                  COD

                       2009   2010   2011

PLTU Meulaboh            --    200     --
PLTU Pesisir Selatan    100    100     --
PLTU Air Anyer           --     20     --
PLTU Bengkalis           --     14     --
PLTU Selat Panjang       --     10     --
PLTU Lombok Baru         25     25     --
PLTU Ambon Baru          15     15     --
PLTU Ternate              7      7     --
PLTU Timika               7      7     --
PLTU Amurang Baru        25     25     --
PLTU Medan Baru         100    100     --
PLTU Sulut Baru          25     25     --
PLTGU Keramasan          --     --     86
PLTU Tarahan             --     --    100
PLTP Ulubelu             --     --     55

Sources: RUPTL 2010

Table--18
Subsidy on electricity, 2010

Description                   Value (Rp billion)

Subsidy in 2010 fiscal year               53,606
Shortage in subsidy in 2009                4,600
Total subsidy 2010                        58,206
Carry over in 2011                         4,894
Total                                     63,100

Sources : PLN

Table--19
Power plants of IPP in operation

                                                               Capacity
   Names of company            Locations            Fuels        (MW)

PT. Cikarang Listrindo   Cikarang, West Java      Gas              150

PT Energi Sengkang       Sengkang, South          Gas              198
                         Sulawesi

Chevron Geothermal       Salak, West Java         Geothermal       165
Salak Ltd and Dayabumi
Salak Pratama Ltd

PT Makassar Power        Pare-pare, South         MFO               60
                         Sulawesi

PT Paitons Energy Coal   Paitons I, East Java     Coal           1.230

Pertamina, Chevron       Drajat, West Java        Geothermal       180
Drajat Ltd. Texaco
Drajat Ltd. and PT
Drajat Geothermal Ind.

Pertamina and Magma      Wayang Windu, West       Geothermal       220
Nusantara Limited        Java

PT Geo Dipa Energy       Dieng, Central Java      Geothermal        60

PT Asrigita Prasarana    Palembang, South                          150
                         Sulawesi

PT Sources Segara        Cilacap, Central Java    Coal             562
Primadaya Coal Coal

PT Dalle Energy Batam    Panaran, Batam           Gas               55

PT Mitra Energi Batam
Panaran, pulau           Panaran,
Batam                    Batam                    Gas               55
Gas

PT Indo Matra Power      Industrial Estates of    Gas               17
                         Kabil, Batam

PT Jembo Energindo       Panaran, Batam           Gas               24

PT Metaepsi Pejebe       Gunung Megang, South     Gas               80
Power Generation         Sumatra

PT Pusaka Jaya Palu      Palu, Central Sulawesi   Coal              27
Power

PT Pertamina             Kamojang, West Java      Geothermal        60
Geothermal Energi

PT Cahaya Fajar Kaltim   Embalut, East            Coal              45
                         Kalimantan

PT Dizamatra Powerindo   Sebayak, North Sumatra   Geothermal        10

PT Bajradaya             Sebayak, North Sumatra   Water             10
Sentranusa                                        energy

PT CIpta Daya            Mobuya, North Sulawesi   Water              3
Nusantara                                         energy

Perum Jasa Tirta         Purwakarta, West Java    Water          150 -
                                                  energy

Aggreko International    Batam                    Gas               30
Project Ltd.

Total                                                            4,761

   Names of company      AF (%)    Period

PT. Cikarang Listrindo      72    1998-2018

PT Energi Sengkang          85    1999-2028

Chevron Geothermal          90    1997-2027
Salak Ltd and Dayabumi
Salak Pratama Ltd

PT Makassar Power           80    1998-2013

PT Paitons Energy Coal      85    2000-2040

Pertamina, Chevron          95    2000-2030
Drajat Ltd. Texaco
Drajat Ltd. and PT
Drajat Geothermal Ind.

Pertamina and Magma         90    2000-2042
Nusantara Limited

PT Geo Dipa Energy          85    2002-2044

PT Asrigita Prasarana       85    2004-2024

PT Sources Segara           80    2007-2037
Primadaya Coal Coal

PT Dalle Energy Batam       80    2005-2016

PT Mitra Energi Batam
Panaran, pulau                    2005-2016
Batam                       84
Gas

PT Indo Matra Power         90    2005-2017

PT Jembo Energindo          65    2008-2011

PT Metaepsi Pejebe          80    2005-2025
Power Generation

PT Pusaka Jaya Palu         80    2007-2032
Power

PT Pertamina                90    2008-2038
Geothermal Energi

PT Cahaya Fajar Kaltim      72    2008-2038

PT Dizamatra Powerindo      90    2008-2038

PT Bajradaya                90    2008-2038
Sentranusa

PT CIpta Daya               80    2007-2027
Nusantara

Perum Jasa Tirta                  2006-2011

Aggreko International        80   2008-2011
Project Ltd.

Total

Sources : Annual reports of PLN, 2010

Table--20
IPP projects delayed

Name of power         Capacity
plants                  (MW)      Location          Developers

PLTM Parluasan         2 x 21     Toba Samosir,     PT. Inpola Meka
                                  North Sumatra     Elektrindo

PLTM Hutaraja          2 x 25     Humbang           PT. Humbahas
                                  Hasudutan,        Bumi Energi
                                  North Sumatra

PLTA Silau-2          2 x 37,5    Simalungun,       PT. Bersaudara
                                  North Sumatra

PLTM Lau Gunung        2 x 50     Dairi, North      PT. Inpola Meka
                                  Sumatra           Elektrindo

PLTM Lae Ordi          4 x 25     Pakpak, North     PT. Bakara Bumi
                                  Sumatra           Energi

PLTM Lae Ordi-2        2 x 50     Pakpak, North     PT. Bakara Bumi
                                  Sumatra           Energi

PLTA Pakkat            2 x 50     Humbang           PT. Energi
                                  Hasudutan,        Sakti Sentosa
                                  North Sumatra

PLTM Batang Toru        100       Pahae regency,    PT. Bumi
                                  North Sumatra     Lestari Energi

Total                   667

PLTM Salido Kecil       300       Pesisir           PT. Anggrek
                                  Selatan, West     Mekar Sari
                                  Sumatra

PLTM Manggani           116       Regency of 50     PT. Pelita
                                  Kota, West        Prima Nusantara
                                  Sumatra

PLTA Talun Berasap     2 x 40     Kerinci, Jambi    PT. Mabruk
                                                    Sarana
                                                    Interbuana

PLTM Batang Anai       2 x 10     Batang Anai,      PT. Megatama
                                  West Sumatra      Powerindo

PLTM Muara Sako        4 x 10     Pesisir           PT. Bergonia
                                  Selatan, South
                                  Sumatra

PLTM Gumanti           2 x 50     Solok regency,    Consortium of
                                  West Sumatra      KDEB Malaysia
                                                    and PT. Limaco

PLTM Bayang A          2 x 30     Regency of        PT.
                                  Pesisir, West     Exabenar/PT.
                                  Sumatra           Indo Energi
                                                    Pekaprtama

PLTM Terusan A         2 x 15     Regency of        PT.
                                  Pesisir, West     Exabenar/PT.
                                  Sumatra           Indo Energi
                                                    Pekaprtama

PLTM Sinamar           2 x 75     Regency of 50     PT. Selo
                                  Kota, West        Kencana Energi
                                  Sumatra

PLTM Induring         2 x 7,5     Regency of        PT. Bergonia
                                  Pesisir, West
                                  Sumatra

Total                  4,296

PLTA Lebong            2 x 30     Rejang Lebong,    PT. Mega Power
                                  Bengkulu          Mandiri

PLTM Manna             2 x 20     South Bengkulu    PR. Manna
                                                    Energy Pratama

PLTM Telanai           2 x 22     Telanai Banding   PT. Lumada
Banding Agung                     Agung, South      sapta Mitra
                                  Sumatra

PLTM Padang Guci       2 x 25     Bengkulu          PT. Prima Mega
                                                    Resource

Total                   194

PLTM Pancarek            8        Sambas regency,   PT. Nusantara
                                  West Kalimantan   Indo Energi

Total                    8

PLTM Cikotok         2 x 5 x 32   Cikotok, West     PT. Bangun Bumi
                                  Java              Bersatu

PLTM Girimukti         2 x 40     Cianjur, West     PT. Girimukti
                                  Javaa             Energi

PLTM                     46       Lebak, West       PT. Kutilang
Leuwikopo                         Java              Paksi Mas

Total                   446

PLTM                     15       West Sumba,       KUD
Walkelosawah                      NTT               Walkelosawah

Total                    15

PLTM Mobuya              30       Kotamubagu,       PT. Cipta Daya
                                  North Sulawesi    Nusantara

PLTM                    12,5      Luwuk, Central    PT. Buminata
Kalumpang                         Sulawesi          Cita Banggai
                                                    Energi

PLTM Hanga-              25       Southeast         PT. Buminata
hanga II                          Sulawesi          Cita Banggai
                                                    Energi

PLTA                    200       Gorontalo         PT. Binatek
Randangan                                           Reka Energi

Total                  267,5

PLTA Tangka           2 x 4,4     Sinjai, South     PT. Sulawesi
                                  Sulawesi          Mini Hydro
                                                    Power

PLTA Rantablela       2 x 1,2     Luwuk, South      PT. Fajar
                                  Sulawesi          Futura Indah

Total                   11,2

PLTM Goal                12       Halmahera,        PT. Lestari
                                  North Maluku      Abadi

Total                    12

Total number of        1.756
projects delayed

Name of power
plants                  Status          COD    Description

PLTM Parluasan       Construction       2010   Progress 75%
                     PPA 21/3/2007

PLTM Hutaraja        Construction       2011   Progress 85%,
                     PPA 19/6/2007             developer
                                               demanding price
                                               adjustment

PLTA Silau-2         Construction       2010   Progress 96%,
                     PPA 7/4/2008              developer
                                               demanding price
                                               adjustment

PLTM Lau Gunung      PPA negotiations

PLTM Lae Ordi        PPA negotiation    2013

PLTM Lae Ordi-2      PPA negotiations   2013

PLTA Pakkat          PPA negotiations   2013

PLTM Batang Toru     PPA negotiations

Total

PLTM Salido Kecil    Operational        2007   Demanding price
                                               adjustment

PLTM Manggani        Construction,      2010   Progress 100%.
                     PPA 8/6/2008              Developer
                                               demands price
                                               adjustment

PLTA Talun Berasap   Halted                    Cancelled as no
                                               location
                                               approval from
                                               forestry
                                               ministry

PLTM Batang Anai     Proposal                  MOR expires

PLTM Muara Sako      Proposal                  Not resumed

PLTM Gumanti         Proposal                  MOU expires 9/
                                               10/2008 load
                                               renewed

PLTM Bayang A        Proposal                  MOU of PT.
                                               Exabenar
                                               expires. New
                                               application by
                                               PT. Indo Energi
                                               Rekapratama

PLTM Terusan A       Proposal                  MOU of PT.
                                               Exabenar
                                               expires. New
                                               application
                                               from PT. Indo
                                               Energi
                                               Rekapratama

PLTM Sinamar         Proposal                  MOU expires

PLTM Induring                                  MOU expires

Total

PLTA Lebong          Construction,      2011   Progress 85%
                     PPA 19/7/2007

PLTM Manna           Construction       2010   No PPA
                     PPA 19/7/2006

PLTM Telanai         Construction              Projects halted
Banding Agung        PPA 18/1/2009

PLTM Padang Guci     No PPA revision           Progress 5%, on
                     yet 7/4/2008              land clearing
                                               phase

Total

PLTM Pancarek        PPA                       AMDAL study,
                     negotiations              as location in
                                               protected forest
                                               area

Total

PLTM Cikotok         21/7/2008          2010   No PPA

PLTM Girimukti       21/7/2008                 Construction
                                               PPA 19/7/2006

PLTM                 6/3/2009           2011   PPA reached
Leuwikopo

Total

PLTM                                           No MOU yet
Walkelosawah

Total

PLTM Mobuya          Operational        2007   Demanding price
                                               adjustment

PLTM                 Operational        2005   Demanding
Kalumpang                                      price adjustment

PLTM Hanga-          Operational        2005   Proposing
hanga II                                       change in
                                               payment
                                               scheme

PLTA                 PPA                2013
Randangan            negotiations

Total

PLTA Tangka          Construction,      2010   Demanding
                     PPA 9/3/2007              price adjustment

PLTA Rantablela      Construction,      2010   Demanding
                     PPA 21/3/2007             price adjustment

Total

PLTM Goal            Construction,      2013   Progress 40%.
                     PPA                       Demanding
                     31/7/2008                 price adjustment

Total

Total number of
projects delayed

Sources : PLN's annual report 2010

Table--21
Economic growth, projection of electric power requirement and
Peak load, 2011-2015

Description   Units     2011      2012      2013      2014      2015

Economy       %          6.2       6.2       6.2       6.2       6.2
Demand        TWh      161.1     176.1     193.6     212.7     233.7
Peak load     MW      28,796    31,692    34,813    38,206    41,916

Sources: PLN

Table--22
Projection of population, growth number of subscribers and
Electrification ratio, 2011-2015

Description             Units     2011    2012    2013    2014    2015

Population              Million  238.2   240.8   243.3   245.9   248.3
Subscribers             Million   44.3    46.7    49.1    51.7    54.5
Electrification ratio.  %         70.4    71.1    73.7    76.5    79.5

Sources: PLN

Table--23
Estimate of power requirement and electrification ratio, 2011-2015

Description             Units    2011     2013     2015

Energy Demand           TWh
Indonesia                       160.5    192.7    230.8
Java-Bali                       125.2    149.6      179
Eastern Indonesia                12.6     15.8     19.1
Western Indonesia                23.3     28.1     35.5

Growth Demand           (%)
Indonesia                         9.1      9.6      9.4
Java-Bali                         8.8      9.4      9.4
Western Indonesia                13.3     13.1     10.5
Eastern Indonesia                 8.9     10.4     12.5

Electrification ratio   (%)
Indonesia                        70.4     73.7     79.5
Java-Bali                        74.8     80.5     86.9
Eastern Indonesia                50.5     55.1     60.2
Western Indonesia                66.3     71.3     80.5

Sources: RUPTL 2010

Table--24
Estimate of requirement in Indonesia, 2011-2016

Description                            2011      2012      2013

Requirement                    GHW  125,199   136,807   149,618
Growth                         %        8.8       9.3       9.4
Production                     GWH  143,267   155,695   169,533
Peak load                      MW    21,379    23,541    25,804
Installed capacity (existing)  MW    21,561    21,485    21,485
Total capacity of systems      MW    30,169    32,926    34,851

Description                       2014      2015

Requirement                    163,688   179,053
Growth                             9.4       9.4
Production                     185,235   202,336
Peak load                       28,194    30,797
Installed capacity (existing)   21,485    21,485
Total capacity of systems       40,448    41,478

Sources: RUKN 2010