Parliament Probes PT PLN over Failed 10,000 MW Program

Thursday, 08 June 2017 , 09:00:00 WIB - Economy

An aerial view of the PLTU Sumbawa Barat steam power plant in West Nusa Tenggara, Thursday (1/6).(ANTARA)

JAKARTA, GRES.NEWS – The House of Representatives Commission VII scrutinized PT PLN, following the finding from the Supreme Audit Agency (BPK) that the state-run electricity company has not collected bills from contractors that executed the 10,000 MW Program launched by former president Susilo Bambang Yudhoyono.

"But we don’t know the actual figure yet," said Mulyadi, the commission’s vice chairman, Wednesday (31/05).

BPK has found misconducts in the 10,000 MW Program launched in 2006-2015, such as overspending by PT PLN due to the abandoned power plant projects, which cost the government a lot of money.

The report, published on Thursday (6/4), revealed that five steam power plant projects cost the government Rp609.54 billion and US$78.69 million.

BPK has also found incompliances and weaknesses in PT PLN’s internal supervision, in relation to the 10,000 MW Program. As a result, 13 steam power plant projects were not completed on time, which occurred over insufficient planning, network and system, and operators that were turned out to be unprepared, and broken down equipment.

The progress of PLTU Adipala and PLTU Pangkalan Susu steam power plants is unclear as the status of the land remains unclear.

Furthermore, PT PLN is yet to collect a total of Rp704.87 billion and US$102.26 million from contractors who failed to start their project on time. There were up to 12 power plant projects that started behind schedule.

The report further revealed that PT PLN cost the nation Rp74.8 billion for leasing land for the PLTU Sewa Kariangau project in East Kalimantan as the project was later cancelled.

RECOMMENDATIONS – In connection to the report, BPK has came up with seven recommendations or PT PLN. First, the state-run electricity company must study the weaknesses, execution and operations of the steam power plant projects. Second, take strategic measures to deal with the risks created by the useless LRC, funding, permits and land acquisitions.

Third, take responsibility and report the extra costs created in the 10,000 MW Program to the company’s shareholders. Fourth, impose sanctions against contractors and company executives responsible for the abandoned projects.

Fifth, assess the appropriateness of the contractors and terminate the contract with contractors building the PLTU NTB 2, PLTU Kalbar 1 and PLTU Kalbar 2 steam power plants. Sixth, intensify coordination with related institutions to resolve the problem. And last, collect the fines for the belated projects from the relevant contractors.

In the 10,000 MW Program, PT PLN targeted to build 37 power plans across Indonesia. The total capacity would actually only reach 9,935 MW.