PLN Ramps Up Electricity Provision to PT KFI, Backing Nickel Downstream Projects in East Kalimantan

PLN signed an agreement with PT Kalimantan Ferro Industry (KFI) on Tuesday (5/3) for the addition of high-voltage electricity to support the nickel downstream industry in East Kalimantan.

PLN and KFI have signed an Amendment to the Power Purchase Agreement (PJBTL) for the Addition of High Voltage Consumer Power to increase the supply power from 100 mega volt ampere (MVA) to 300 MVA.

PLN President Director Darmawan Prasodjo said that PLN continues to support the downstream of the mineral sector through the provision of reliable and competitive electricity following the government’s vision of boosting industrial downstream.

“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,” he said in a press release on Friday (15/3).

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

“Providing the best service is our commitment to encourage business growth of business and industry players. Customers should focus on their business development and let PLN take care of the electricity. Besides KFI, there is also growth in electricity consumption for the needs of IKN Nusantara,” he explained.

Agung continued that the current economic growth in East Kalimantan is sufficient to supply the growing electricity demand. The current supply capacity of the East Kalimantan system is 768 MW with a peak load of 660 MW.

The additional electricity for KFI is expected to continue 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.

KFI Owner Representative Muhammad Ardhi Soemargo said that his team had previously agreed on a plan to gradually add power up to 800 MVA from PLN. “The PJBTL that we signed is to accelerate what we have committed,” Ardhi said.

Head of the Communication Bureau, Public Information Services and Cooperation of the Ministry of Energy and Mineral Resources Agus Cahyono Adi said that refining facilities or smelters need to get support so that downstream can run well.

“One of the supports needed is the availability of electricity for smelters. With a reliable electricity supply, it is expected that the smelter will produce mineral derivatives by the predetermined target,” he said.

Image source: KataData / Harita Nickel

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