Revealed! This is the first coal-fired power plant to be euthanized News – 2 hours ago

Jakarta, CNBC Indonesia – Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif confirmed that this year there will be one coal-fired Steam Power Plant (PLTU) included in the PLTU early retirement program transaction. The PLTU in question is PLTU Cirebon-1.

Initially, the government itself had prepared two PLTUs that would be included in the early retirement program, including PLTU Cirebon-1 and PLTU Pelabuhan Ratu. However, what is possible to transact this year is PLTU Cirebon-1.

“Cirebon-1, because it is the most possible,” said Arifin at the Ministry of Energy and Mineral Resources Building, Jakarta, Friday (10/11/2023).

According to Arifin, for the Cirebon-1 PLTU itself, there is a commitment to support from the Asian Development Bank (ADB) to realize the accelerated operation of the PLTU. Even so, he cannot confirm how much funds will be disbursed by ADB.

“This is just the principle but there has been a study. I haven’t seen the funds yet,” he said.

Previously, Deputy Chairman of Commission VII DPR Eddy Soeparno revealed that to realize the cessation of operations of the two PLTUs, the funds needed reached IDR 25 trillion. In detail, the Pelabuhan Ratu PLTU is IDR 12 trillion and the Cirebon-1 PLTU is IDR 13 trillion.

“The APBN is not possible, it is not strong enough to cover early retirement. This must have other sources which we know there are sources from JETP. We also know there is support from ADB to carry out early retirement, we know that currently there is an early retirement for PLTU Pelabuhan Ratu and PLTU “Cirebon requires funds of IDR 25 trillion,” he said in the Energy Corner event, CNBC Indonesia, Tuesday (24/10/2023).

Therefore, there is a need for other funding sources that can be used to support this PLTU early retirement program. For example, funding through the Just Energy Transition Partnership (JETP) scheme and support from the Asian Development Bank (ADB).

“For Cirebon-1, there is already a commitment from the ADB to finance it. Well, this is very big with just two PLTUs,” he said.

As is known, the Ministry of Finance has just issued Minister of Finance Regulation (PMK) Number 103 of 2023 concerning Providing Fiscal Support through the Funding and Financing Framework in the Context of Accelerating the Energy Transition in the Electricity Sector.

Through this new regulation, financing related to the cessation of operations of a number of Steam Power Plants (PLTU) faster than the initial plan, aka early retirement, will use the APBN.

[Gambas:Video CNBC]

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