PT PLN (Persero) will convert around 51 to 52 power plants that use fuel (BBM) to gas this year (2020). These plants are located in eastern Indonesia.

Deputy Director of PLN, Darmawan Prasodjo said the conversion was to reduce costs because fuel consumption was more expensive than gas. Darmawan explained the use of fuel costs incurred at US $ 20 per MMBTU, after being converted the price will drop to around US $ 12-14 MMBTU. “We are cooperating between PLN and Pertamina. Later we calculate the economy, it is still cheaper than US $ 20 per MMBTU, and LNG can be taken from Tangguh, Bontang. Masela has only started 2026-2027,” he said.

He gave an example, for example, with a generator with a capacity of 20 MW, the capacity factor is 15%, while the need is only 0.9 MMSCFD, so that such a generator is not included in the Ministerial Decree. “Of course we are in accordance with orders from the Ministerial Decree of an important economic scale, of course there are our generators who are not included in the Ministerial Decree,” he explained.

Through this conversion,  it means changing import-based energy into domestic components. This conversion is based on a Ministerial Decree (Kepmen) of Energy and Mineral Resources (ESDM).

PLN claimed to be still doing calculations. While the power plants that will be converted have been selected based on the Ministerial Decree. The small capacity, makes the cost of sending gas expensive, so that massive infrastructure development is needed.