Indonesia's PLN inks deal on developing 500MW of distributed powergen capacities

T&D grid development is also being eyed.

In connection with Indonesian President Joko Widodo’s visit to Germany, Siemens has signed two MoUs with the state power company Perusahaan Listrik Negara (PLN). Both parties agreed on the development of 500 megawatts (MW) of distributed power generation capacities and on the development of the Indonesian transmission and distribution grid as well.

Indonesia is an ambitious country with big potential. GDP is growing at a rate of five to seven percent per year. Against this background the Indonesian government has developed a comprehensive infrastructure program. In the framework of this program, the country plans to expand its power generation capacities by 35 gigawatts (GW) by 2019. Moreover it also comprises an expansion of the power transmission and distribution grid in order to secure the power supply of urban areas and improve the electricity access for other regions at the same time.

“Siemens is ready to support Indonesia’s ambitious energy infrastructure program. With our broad portfolio and expertise we can help to develop a sustainable, affordable and modern power system,” said Roland Busch, Member of the Siemens Board. “Furthermore we can provide support with our expertise for project financing and we are ready to expand our manufacturing capabilities in the country,” Busch added.

Siemens has been actively engaged in supporting Indonesia’s infrastructure with innovative technologies since 1855. Several projects like the Jawa Power’s paiton II Plant in East Java or the Simangkuk project at the Sumatera grid support Indonesia’s energy supply. With approximately 1500 employees Siemens Indonesia generated sales of 263 million EUR in fiscal 2015.