IESR welcomes new PLN’s leadership

Dec, 24 2019

Penulis :

FOR IMMEDIATE RELEASE

Contact:
Fabby Tumiwa
Executive Director, IESR
(+6221) 22323069
iesr@iesr.or.id
Gandabhaskara Saputra
Communications Coordinator, IESR
(+6221) 22323069
ganda@iesr.or.id

IESR welcomes new PLN’s leadership

IESR welcomes the appointee of the new BoD and BoC of PT PLN Persero today. According to Fabby Tumiwa, Executive Director of IESR, the appointment of Zulkifli Zaini as President Director and Synthia Roesli as Finance Director indicates that the main challenges for PLN from the perspective of government are financial issues, funding for PLN’s expansion, investment and operational efficiency. 

However, Fabby pointed out that PLN faces more significant challenges. As the business environment is changing, PLN must take a radical transformation of its business model, improve operational efficiency, and undertake serious governance overhaul to be able to survive its business. 

New BoD has to address challenges of potentially stranded assets of generation capacity, sluggish demand, and increase renewable generation to meet national policy targets amid rising thermal power capacity. 

In ICEO 2020, given the lower electricity demand in recent years and the future demand forecast for the next five years PLN generation capacity addition could only grow by 4-4.5 GW per year. To meet 23% renewables in primary energy mix target or 31% of total PLN generation capacity in 2025, +/- 75% of new capacity should come from renewables since 2020. 

Fabby explained that the consequence of this is that BoD and MEMR should postpone or cancel any new coal power project starting in 2020. 

The new BoD doesn’t have much time left. As RUPTL 2020-2029 is underway and shall be landed at Minister EMR’s desk for approval Jan/Feb 2020, adjustment of the 10-yr planning has to reflect the aforementioned situation. 

Jakarta 23 December 2019

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