Efficient BPP will Ensure Electricity Quality and Tariff

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 309.Pers/04/SJI/2020

Date: 21 October 2020

Efficient BPP will Ensure Electricity Quality and Tariff

The business transformation put forward by PT PLN (Persero) is expected to create more efficient electricity generation cost (BPP). Thus, all layers of the society can enjoy affordable, reliable, and high quality electricity.

"PLN needs to make various efforts optimally to create efficient electricity generation cost (BPP), so that we can provide high quality, reliable, environmentally friendly, and affordable electricity to all layers of Indonesian society," said Minister of Energy and Mineral Resources (EMR) Arifin Tasrif when attending the Learning, Innovation, Knowledge, and Exhibition (LIKE) 2020 virtually on Tuesday (20/10).

Arifin went on to say that PLN can regulate the supply chain management of primary energy and maintain the synergy between stakeholders. "The management of the Average Interruption Duration Index (SAIDI) and the System Average Interruption Frequency Index (SAIFI) is crucial if PLN wants to realize efficient BPP," he said.

PLN currently has four pillars to welcome the 4.0 industry, namely green, lean, innovative, and customer focused. Arifin appreciated PLN's adaptation to today's developments, which will create a sustainable business. "I am sure with the transformation, PLN can create a healthier electricity business and provide more optimal benefits for the community, nation, and state," he said.

He also suggested PLN to improve its service concept by prioritizing the customers. Customer satisfaction and intimacy are vital points for business continuity. "One of the concepts that the management of PLN needs to embrace is flexibility, applying human-oriented service," he explained.

Arifin confirmed that the government was committed to supporting the business transformation process carried out by PLN, especially to make the BPP more efficient. A number of policies that have been adopted are the policy on primary energy for coal and gas power plants, pricing of electricity purchase from IPP based on the BPP, optimizing the energy mix by reducing electricity generation from oil-fired power plants.

Additionally, the government controls any costs that form the BPP, both fixed and fuel costs. The government makes sure an efficient electricity business; at the generation side, for example, by regulating the fuel consumption of specific power plants, while at the distribution side, by regulating network losses. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

Share This!