PT. Visi Globalindo Data Utama predicts that in this fourth quarter of 2018, the national electricity industry will only grow by 5.39%, or decrease from the previous quarter of 2018. It is believed that the whole year 2018, the electricity industry will drop significantly if compared to last year.
Some influencing factors cause the decreasing performance of the national electricity industry. One of the elements is the postponement of power plant projects with the capacity of 15,200 MW or 43.43% of the total target of electricity capacity. The delay is not only for plans that have not entered the phase of financial close but also for projects that are already in the period of Commercial Operation Date (COD) in 2018-2019, and they will be postponed to be in the year 2021-2026. Based on information collected, the total investment of the delayed projects reaches USD 23.9 billion.
The postponements become a concern for investors who have committed to giving loans to Independent Power Producer (IPP). The questions question the delays.
So far, there have been already questions related to the regulation set up by the Ministry of Energy and Mineral Resource (ESDM) on the increase of local content (TKDN) for electricity projects, from 20% to become 39%. This regulation is quite disturbing for the IPP because some components for power plants are not produced in Indonesia.
Meanwhile, according to the Minister of ESDM Mr. Ignatius Jonan, there are two reasons for the government to postpone the power plant projects. The first reason is to lessen the escalation of import of goods, while on another side to increase the local content for the projects. The second reason is related to the target of electricity consumption growth. As stated in the State Budget Plant (APBN 2018), the growth of electricity consumption is 8%; but it could only reach grow by some 4% per QII-2018.