PLN to add power to nickel industry in East Kalimantan

Published on 14/03/2024 at 04:09 GMT+7 Reading time

State electricity company PT PLN has signed an agreement to increase power supply for East Kalimantan-based nickel mining company PT Kalimantan Ferro Industry (KFI) from 100 Mega Volt Ampere (MVA) to 300 MVA.

PLN President Director Darmawan Prasodjo said PLN would continue to support the downstream mineral sector through the provision of reliable and competitive electricity. This commitment is also in line with the Indonesian Government's vision in boosting industrial downstreaming.

"Reliable electricity supply has a crucial role in supporting economic growth, including for the industrial segment. PLN is committed to supporting downstream efforts in line with the government's strategy to increase the added value of mining commodities," Darmawan said in Jakarta on March 5, 2024.

General Manager of PLN East Kalimantan and North Kalimantan Distribution Unit Agung Murdifi said the industrial customer segment in East Kalimantan continues to grow every year that PLN is determined to improve a reliable electricity system to respond to existing growth trends.

"Providing the best service is meant to encourage business growth of business and industry players. Customers just need to focus on developing their business, let PLN take care of the electricity. In addition to PT KFI, there is also growth in electricity demand for the Nusantara Capital City (IKN)," Agung said.

Agung cited that the current supply capacity of the East Kalimantan system is 768 MW with a peak load of 660 MW.

The additional electricity for PT KFI is expected to boost the economic growth of Bumi Etam, especially Kutai Kartanegara Regency. The PT KFI project is targeted to absorb at least 10 to 13 thousand local workers in the future.

Owner Representative of PT Kalimantan Ferro Industry Muhammad Ardhi Soemargo said that his party had previously agreed on a plan to gradually add power up to 800 MVA from PLN. He appreciated PLN's readiness to provide electricity for industrial needs.

"The Electric Power Purchase Agreement (PJBTL) that we signed is in order to accelerate what we have committed. PLN has been timely in providing us with electricity, that is the most important thing," Ardhi said.

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