PLN Moves 2 Gas Power Plants from Sumatra to Halmahera for Antam's Smelters

JAKARTADAILY.ID – The State Electric Company, or PLN, signed an agreement with PT Antam to move two gas power plants from South Sumatra and Jambi, to East Halmahera, Maluku, in order to power Antam's ferronickel processing and refining plants, which require 111 megawatts.

The agreement between the two state-owned enterprises was marked by the signing of the Head Of Agreement (HOA) between PLN and PT Antam at PLN Headquarters, Jakarta, last week, and was republished through a press release on PLN's Instagram account @pln_id, and on their website portal.pln.co.id on Monday.

PLN President Director Darmawan Prasodjo said that PLN had prepared a capacity of 111 MW to ensure supply reliability and anticipate the growth of Antam's smelter needs in the future. The plan is that the electricity supply will be divided into two stages.

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First, for the next six months, PLN will supply ANTAM's electricity needs of 51 MW. Second, after 12 months, PLN will complete the electricity supply of 60 MW for the electricity needs of a fully ferronickel smelter.

“This 111 MW capacity is dedicated to supporting Antam's long-term needs. Please, if in the future Antam needs additional electricity supply, we are also ready," said Darmawan.

To be able to meet the electricity demand, PLN will bring in two gas engine power plants (PLTMG) dual-fuel systems from the South Sumatra region of 51 MW and Jambi of 60 MW to be brought to East Halmahera so as to optimize electricity supply for Antam's smelter.

“There are several areas that are currently in oversupply so that the power plant is currently underutilized. So we can maximize its use for Antam's ferronickel smelter in East Halmahera," said Darmawan.

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Meanwhile, Antam's President Director, Nicolas Kanter, explained that the smelter is one of the national strategic projects to support mineral downstream in Indonesia. With the support of PLN electricity, the smelter, which has been completed, will soon be fully operational.

"With the synergy with PLN, this smelter will operate in 2022," Nico said.

Nico hopes that the process of building and connecting electricity will be carried out quickly, accurately, and reliably. "So that in the end it can increase its contribution to the country and provide more benefits, especially for the community around the factory's operating area," said Nico.

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Nico hopes that this synergy can accelerate mineral downstream. The active role of SOEs in providing added value for state revenues can be realized immediately.