This is the RI’s First PLTU Early Retirement Project Funded by the US Cs News – 2 hours ago

Jakarta, CNBC Indonesia – The Ministry of Energy and Mineral Resources (ESDM) revealed that the early retirement of the Cirebon-1 Steam Power Plant (PLTU) was prioritized to obtain energy transition funding from various developed countries, including Japan and the United States (US), through the Just Energy Transition Partnership (JETP) program ).

This was stated by the Minister of Energy and Mineral Resources, Arifin Tasrif, at the launch of JETP’s Comprehensive Investment and Policy Plan (CIPP) investment commitment. As is known, the United States and a number of other developed countries have initiated special energy transition funding for Indonesia through JETP with a commitment value of up to US$ 20 billion or around Rp. 300 trillion.

Arifin said that the early retirement of PLTU Cirebon-1 was a priority project to be given JETP funds. After that, he said that his party would prioritize the electricity transmission development program.

“What we are targeting is (early retirement of PLTU) Cirebon-1 first. Now after that it goes to transmission,” said Arifin when asked which projects were prioritized for JETP funding, at the Ministry of Energy and Mineral Resources Office, Jakarta, Tuesday (21/11/ 2023).

Apart from that, he said that the electricity transmission project that will be prioritized after the early retirement of PLTU Cirebon-1 is the transmission or electricity network (grid) project that will connect Java-South Sumatra-North Sumatra electricity.

“Java has an excess (of electricity supply), we send it to South Sumatra, South Sumatra, the excess (of electricity supply) sends it to the top (North Sumatra),” he said.

Initially, the government itself had prepared two PLTUs that would be included in the early retirement program, including PLTU Cirebon-1 and PLTU Pelabuhan Ratu. However, what is possible to transact this year is PLTU Cirebon-1.

“Cirebon-1, because it is the most possible,” said Arifin at the Ministry of Energy and Mineral Resources Building, Jakarta, Friday (10/11/2023).

According to Arifin, for the Cirebon-1 PLTU itself, there is a commitment to support from the Asian Development Bank (ADB) to realize the accelerated operation of the PLTU. Even so, he cannot confirm how much funds will be disbursed by ADB.

“This is just the principle but there has been a study. I haven’t seen the funds yet,” he said.

Previously, Deputy Chairman of Commission VII DPR Eddy Soeparno revealed that to realize the cessation of operations of the two PLTUs, the funds needed reached IDR 25 trillion. In detail, the Pelabuhan Ratu PLTU is IDR 12 trillion and the Cirebon-1 PLTU is IDR 13 trillion.

“The APBN is not possible, it is not strong enough to cover early retirement. This must have other sources, which we know is a source from JETP. We also know there is support from ADB to carry out early retirement. We know that currently there is an early retirement for PLTU Pelabuhan Ratu and PLTU “Cirebon requires funds of IDR 25 trillion,” he said in the Energy Corner event, CNBC Indonesia, Tuesday (24/10/2023).

Therefore, there is a need for other funding sources that can be used to support this PLTU early retirement program. For example, funding through the Just Energy Transition Partnership (JETP) scheme and support from the Asian Development Bank (ADB).

“For Cirebon-1, there is already a commitment from the ADB to finance it. Well, this is very big with just two PLTUs,” he said.

Meanwhile, the Ministry of Finance has just issued Minister of Finance Regulation (PMK) Number 103 of 2023 concerning Providing Fiscal Support through the Funding and Financing Framework in the Context of Accelerating the Energy Transition in the Electricity Sector.

Through this new regulation, financing related to the cessation of operations of a number of Steam Power Plants (PLTU) faster than the initial plan, aka early retirement, will use the APBN.

[Gambas:Video CNBC]

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