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No. Ministry of Energy and Mineral Resources The Republic of Indonesia THE STUDY ON THE IMPROVEMENT MEASURES FOR ELECTRIC POWER GENERATION FACILITIES IN JAVA-BALI REGION IN THE REPUBLIC OF INDONESIA FINAL REPORT November 2006 JAPAN INTERNATIONAL COOPERATION AGENCY NEWJEC INC. THE KANSAI ELECTRIC POWER CO., INC. E D J R 06-125

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Page 1: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

No

Ministry of Energy and Mineral Resources The Republic of Indonesia

TTHHEE SSTTUUDDYY OONN TTHHEE IIMMPPRROOVVEEMMEENNTT MMEEAASSUURREESS FFOORR

EELLEECCTTRRIICC PPOOWWEERR GGEENNEERRAATTIIOONN FFAACCIILLIITTIIEESS IINN JJAAVVAA--BBAALLII RREEGGIIOONN

IINN TTHHEE RREEPPUUBBLLIICC OOFF IINNDDOONNEESSIIAA

FFIINNAALL RREEPPOORRTT

NNoovveemmbbeerr 22000066

JAPAN INTERNATIONAL COOPERATION AGENCY

NEWJEC INC THE KANSAI ELECTRIC POWER CO INC

E D

J R

06-125

PREFACE

In response to a request from the Government of Republic of Indonesia the Government of Japan decided to conduct the Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia and the study was implemented by the Japan International Cooperation Agency (JICA) JICA selected and dispatched a study team headed by Mr Yasuharu Matsuda of the NEWJEC Inc and consist of NEWJEC Inc and KANSAI Electric Power Co Inc to Indonesia five times from November 2005 to October 2006 The study team held discussions with the officials concerned of the Government of Indonesia and PT PLN (Persero) and conducted related field surveys After returning to Japan the study team compiled the final results in this report I hope this report will contribute to improvement of electric power generation facilities and to enhancement of friendly relations between our two countries I wish to express my sincere appreciation to the officials concerned of the Government of Indonesia for their close cooperation throughout the study

November 2006

Tadashi IZAWA Vice President Japan International Cooperation Agency

November 2006

LETTER OF TRANSMITTAL

Mr Tadashi Izawa Vice President Japan International Cooperation Agency Tokyo Japan We are pleased to submit to you the report on the Study on the Improvement Measures for Electric Power Generation facilities in Java-Bali Region in the Republic of Indonesia This study was conducted by NEWJEC Inc in association with KANSAI Electric Power Company Co Inc under a contract to JICA in a period from October 2005 to November 2006 During the course of the study the study team visited objective sixteen power stations and developed improvement measures for electric power generation facilities including operation and maintenance to meet a shortmedium-term power demand in the relevant region Concerning power generation facilities repowering plans in combination with shutdown of the existing less efficient power stations were proposed in consideration of a current expensive fuel oil For operation and maintenance aspects effective measures to prevent the current frequent forced outages were proposed based on the analysis of causes of forced outages and the current situation Furthermore technology transfer relating to Remaining Life Assessment aiming for effective and appropriate operation and maintenance was conducted We dearly wish that our proposed measures will contribute to the improvement of reliability of power supply and to the alleviation of the current tight balance of power supply-demand in Java-Bali region We would like to take this opportunity to express our sincere gratitude to your Agency the Ministry of Foreign Affairs and the Ministry of Economy Trade and Industry We are also most grateful for the cooperation and assistance from the officials and personnel concerned in Indonesia the Ministry of Energy and Mineral Resources PT PLN (Persero) Indonesia Power PJB and each power station

Very truly yours __________________________ Yasuharu Matsuda Team Leader The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Abbreviation Table Abbreviation Full Description in English (Indonesian)

ADB Asian Development Bank

AH Air Heater

AI Annual Inspection

ANDAL Environmental Impact Analysis

AVR Automatic Voltage Control System

BAPPENAS National Development Planning Agency (Badan Perencanaan Pembanguanan Nasional)

BFP Boiler Feed Water Pump

BLK Block

BP British Petroleum

BPMIGAS Executive Agency for Upstream Oil and Gas Business Activity (Badan Pelaksana Kegiatan Usaha Hulu Minyak Dan Gas Bumi)

CB Circuit Breaker

CBM Condition Based Maintenance

CDF Computer Fluid Dynamics

CWP Circulating Water Pump or Cooling Water Pump

DSS Daily Start and Stop

De-NOx Denitration

De-SOx Desulfurization

EIAAMDAL Environmental Impact Assessment

EIRR Economic Internal Rate of Return

FIRR Financial Internal Rate of Return

FOH Forced Outage Hours

FOH (L) Forced Outage Hours caused by power grid system

FOH(D) Forced Outage Hours caused by power station

GI General Inspection

GIB Gas Insulated Busbar

GIS Gas Insulated Switchgear

GOV Governor

HHV High Heat Value

HP High Pressure

HRSG Heat Recovery Steam Generator

HSD High Speed Diesel Oil

I amp C Instrumentation and Control

IP Indonesia Power

IP Intermediate Pressure

IPP Independent Power Producer

JBIC Japan Bank for International Cooperation

JICA Japan International Cooperation Agency

KA ndash ANDAL Environmental Impact Analysis Term of Reference

- 1 - Draft Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Abbreviation Full Description in English (Indonesian)

LFC Load Frequency Control

LHV Low Heat Value

LITBANG PLN Research and Development Center for Electricity (PT PLN Penelitian dan Pengembangan Ketenagalistrikan)

LNG Liquid Natural Gas

LP Low Pressure

MELCO Mitsubishi Electric Corporation

MEMR Ministry of Energy and Mineral Resources

METI Ministry of Economy Trade and Industry

MFO Marine Fuel Oil

MHI Mitsubishi Heavy Industries

MO Major Overhaul

MOH Maintenance Outage Hours

NG Natural Gas

P3B Jawa Bali Transmission and Load Dispatching Center (Penyaluran Dan Pusat Pengatur Beban Jawa Bali)

PJB PLN Java Bali Power Company (PT Pembangkitan Jawa-Bali)

PLN Indonesia Electricity Corporation (Perusahaan Umum Listrik Negara PERSERO)

PLTA Hydro Power Plant

PLTD Diesel Power Plant

PLTG Gas Turbine Power Plant

PLTGU Combined Cycle Power Plant

PLTP Geothermal Power Plant

PLTU Steam Power Plant

POH Planned Outage Hours

RH Re-heater

RKL UKL Environmental Management Plan

RLA Remaining Life Assessment

RPL UPL Environmental Monitoring Plan

RSH Reserve Shutdown Hours

Rp Indonesian monetary unit (1 US$ = 9000 Rp in 2005)

SCADA Sequential Control and data Acquisition System

SH Super Heater

SH Service Hours

TIT Turbine Inlet Temperature

UBP Generation Business Unit (Unit Busnis Pembangkitan)

WB World Bank

WSS Weekly Start and Stop

WW Water Wall

Draft Final Report - 2 -

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Unit Table Abbreviation Unit

bbl Barrel (1 bbl = 159 litter)

GWh Gigawatt-hour

kW Kilowatt

kWh Kilowatt-hour ( 1 kWh = 860 kcal) (1 kcal = 3968 BTU)

MMBTU 106 British Thermal Unit (MM = 106)

MMSCF 106 Standard Cubic Feet (MM = 106)

mmscfd Million Standard Cubic Feet per Day

MSCF 103 Standard Cubic Feet (M = 103)

MVA Mega-volt-ampere

MW Megawatt

MWh Megawatt-hour

VA Volt-ampere

References

(1) ldquoThe Project Formation Study for the Improvement of Utilization of Electric Power Facilities in Java-Bali Region in the Republic of Indonesiardquo September 2003 JICA

(2) ldquoThe Preliminary Study for the Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Regionrdquo June 29 2005 JICA

(3) ldquoBasic Strategy of Japanrsquos ODA Loan (The Medium-Term Strategy for Overseas Economic Cooperation)rdquo April 2005 Japan Bank for International Cooperation

(4) ldquoEx-post Evaluation Report on ODA Loan Project 1999 (Gas Firing Modification Works of Gresik Steam Power Plant Units III and IV)rdquo Japan Bank for International Cooperation

(5) ldquoEx-post Evaluation Report on ODA Loan Project 2002 (Priok Steam Power Plant Unit 3 amp 4 Rehabilitation Project)rdquo Japan Bank for International Cooperation

(6) ldquoStudy Report for CDMJI 2004 (Feasibility Study on the Effective Utilization of Biogas Recovery at Waste Disposal in Indonesia)rdquo 2004 KAJIMA Corporation and YACHIYO Engineering CO LTD

(7) ldquoPolicy Working Paper 2438 (Measurements of Poverty in Indonesia 1996 1999 and Beyond)rdquo 2000 The World Bank

- 3 - Draft Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- i - Draft Final Report

TABLE OF CONTENTS 1 General 1 - 1 11 Background 1 - 1 12 Purpose of the Study 1 - 2 13 Study Area and Scope of Work 1 - 2

131 Study Area 1 - 2 132 Scope of Work 1 - 4

2 Recognition of Current Situation in Java-Bali Region 2 - 1 21 Confirmation of Power Development Plan 2 - 1

211 Power Development Plan 2 - 1 212 Transmission System Expansion Plan 2 - 6

22 Confirmation of Fuel Supply Plan 2 - 9 221 Fuel Oil Prices 2 - 9 222 Natural Gas 2 - 9 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region 2 - 11

23 Confirmation of Financial Status of PLN and Power Generation Companies 2 - 12 231 PLN 2 - 12 232 PJB 2 - 14 233 Indonesia Power (IP) 2 - 15

24 Review of Collected Data and Information Relating to Technology Transfer 2 - 16 241 Thermal Power Station 2 - 16 242 Hydropower Station 2 - 19

25 Current Status of JBIC Export Credit 2 - 22 251 Agreement on Export Credit Line 2 - 22 252 Basic Condition of Export Credit Line 2 - 22 253 Current Status of Export Credit Line Procedure in Indonesia 2 - 23 254 Export Credit Line Currently Planned by PLN 2 - 24

26 Confirmation of Environmental Regulation Relating for Power Sector 2 - 26 261 Background of Environmental and Social Consideration in Indonesia 2 - 26 262 Institution of Environmental and Social Consideration and Legal Framework 2 - 27 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities 2 - 29 264 Environmental Quality 2 - 31 265 Stakeholder 2 - 32

3 Review of Existing Electric Power Generation Facilities 3 - 1 31 Confirmation of Current Status and Issues Relating to Facilities 3 - 1

311 Thermal Power Stations 3 - 1 312 Hydropower Stations 3 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - ii -

32 Confirmation of Current Status and Issues Relating to Operation and Maintenance 3 - 57 321 Thermal Power Stations 3 - 57 322 Hydropower Stations 3 - 95

33 Confirmation of Current Status and Recommendation on Improvement Relating to the Existing Power Facilities 3 -137 331 System Stability 3 -137 332 Existing Transmission Substation Facilities and Availability 3 -138 333 Number of Service Interruptions 3 -139 334 Frequency 3 -141 335 Voltage 3 -141

4 Rehabilitation Modification and Repowering Plans based on Existing Facilities 4 - 1 41 Thermal Power Stations 4 - 1

411 Technical Study 4 - 1 412 Economic Financial Analysis 4 - 17 413 Environmental and Social Consideration 4 - 39

42 Hydropower Stations 4 - 59 421 Technical Study 4 - 59 422 Economic Financial Analysis 4 - 60 423 Environmental and Social Consideration 4 - 60

5 Improvement Measures relating to Operation Maintenance and Inspection 5 - 1 51 Toward Improvement of Operation Performance 5 - 1

511 PLN and North American Reliability Council (NERC) 5 - 1 512 Maintenance Optimization Program (MOP) 5 - 2

52 Thermal Power Station 5 - 5 521 Improvements to prevent Routine Accidents and Troubles 5 - 6 522 Improvement Plans of Scheduled Inspection Work from Operational Aspect 5 - 18

53 Hydropower Stations 5 - 25 54 Regulations related to Power Utilities Companies in Japan 5 - 28

541 Regulations Related to Electricity Utilities Industry Law 5 - 28 542 Other Related Regulations and Qualified Personnel in Japan 5 - 35

55 Guideline and Management Plan for Thermal Power Station 5 - 37 551 System and Regulations on the Operation MaintenanceInspection Management 5 - 37 552 Management Plans and Guideline for the Operation Maintenance Inspection Management of the Existing Thermal Power Equipment 5 - 41 553 Human Resources Development 5 - 45 554 Safety Management 5 - 47

56 Guideline and Management Plan for Hydropower Station 5 - 49 561 Items for Operation Job 5 - 49 562 Items for Maintenance Job 5 - 50

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- iii - Draft Final Report

563 Items for Training 5 - 52 564 Items for Safety Work 5 - 56 565 Sample of Regulation Rule Standard Manual for Operation Maintenance and Safety 5 - 57

6 Technology Transfer 6 - 1 61 Thermal Power Station 6 - 1

611 Background 6 - 1 612 Technology Transfer 6 - 4 613 List of Participants 6 - 16 614 List of Distributed Material in the Technology Transfer 6 - 18

62 Hydropower Station 6 - 20 621 Background 6 - 20 622 Technology Transfer 6 - 22 623 List of Participants 6 - 26 624 List of Distributed Material in the Technology Transfer 6 - 26

7 Conclusion and Recommendation 7 - 1 71 Conclusion 7 - 1

711 Thermal Power Stations 7 - 1 712 Hydropower Stations 7 - 3 713 Power Facilities (Transmission Line and Substation) 7 - 3 714 Technology Transfer for Remaining Life Assessment (RLA) 7 - 3

72 Recommendation 7 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - iv -

LIST OF TABLES Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Table 21-1 Power Development Plan in Java-Bali Region Table 21-2 Power Development Plan for Whole Indonesia Table 21-3 Power Development Plan by Fuel Type Table 21-4 Announcement of Coal Fired Power Plant Projects Table 22-1 Gas Demand and Supply Balance from 2006 to 2015 Table 23-1 Profit and Loss Statement of PLN Table 23-2 Profit and Loss Statement of PJB Table 23-3 Profit and Loss Statement of IP Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Table 25-1 Loan Condition of JBIC Export Credit Table 26-1 Ambient Air Quality Standards Table 26-2 Emission Gas Standards Table 26-3 Ambient Water Quality Standards Table 26-4 Ambient Sea Water Quality Standards Table 26-5 Wastewater Standards Table 26-6 Noise Level Standards Table 26-7 Vibration Level Standards Table 26-8 Odor Standards Table 31-1 Summary of Performance and Capacity Data of Objective 12 Thermal Power

Stations Table 31-2 Capacity Data Summaries of 12 Thermal Power Stations Table 31-3 Capacity Derating Summaries on PLTGUsPLTGs Table 31-4 Main Features for Muara Tawar (PJB) Power Station Table 31-5 Main Features for Gresik Power Station Table 31-6 Main Features for Paiton Power Station Table 31-7 Main Features for Perak Power Station Table 31-8 Main Features for Tanjung Priok Power Station Table 31-9 Main Features for Muara Karang Power Station Table 31-10 Main Feature for Tambak Lorok Power Station Table 31-11 Main Features for Grati Power Station Table 31-12 Main Features for Suralaya Power Station Table 31-13 Main Features for Pesanggaran Power Station Table 31-14 Main Features for Gilimanuk Power Station Table 31-15 Main Features for Pemaron Power Station Table 31-16 (1) Original Proposals of Rehabilitation Modification and Repowering Plans for IP Table 31-16 (2) Original Proposals of Rehabilitation Modification and Repowering Plans for PJB

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- v - Draft Final Report

Table 31-17 Additional Proposals of Oil Reduction Plans Table 31-18 Final Proposals for Further Study Table 31-19 Main Features of Objective Hydropower Stations Table 31-20 Annuals Scheduled Outage and Forced Outage Hour (Saguling) Table 31-21 Analysis Scheduled Outage and Forced Outage Hour (Cirata) Table 31-22 Analysis Scheduled Outage and Forced Outage Hour (Soedirman) Table 31-23 Analysis Scheduled Outage and Forced Outage Hour (Sutami) Table 32-1 Forced Outage (Times) for Thermal Power Stations Table 32-2 Forced Outage (Hours) for Thermal Power Stations Table 32-3 Number of Forced Outages (Times) for PLTU Table 32-4 Number of Forced Outages (Times) for PLTG Table 32-5 Number of Forced Outages (Times) for PLTGU Table 32-6 Records of Scheduled MaintenanceInspection for 2003 2004 and 2005 by Unit

Type Table 32-7 PlansActual of Scheduled MaintenanceInspection for 2006 by Unit Type

(As of July 2006) Table 32-8 System for Maintenance Division at Power Station Table 32-9 Sharing of Role between Maintenance Department of the Power Station and

Maintenance Business Unit (UBHARUHAR) Table 32-10 Support System in UBHAR for Scheduled MaintenanceInspection Work Table 32-11(1)~(4) Summary of Forced Outage for 2003 2004 and 2005 at Each Unit Type Table 32-12(1)~(11) Summary of Forced Outage for 2003 2004 and 2005 at Each Power Station Table 32-13 Cause of Scheduled OutageForced Outage amp Outage Hour (Saguling) Table 32-14 Cause of Scheduled OutageForced Outage amp Outage Hour (Cirata) Table 32-15 Cause of Scheduled OutageForced Outage amp Outage Hour (Soedirman) Table 32-16 Cause of Scheduled OutageForced Outage amp Outage Hour (Sutami) Table 41-1 Final Plans for Further Study at 2nd Steering Committee Table 41-2 UBP Semarang Thermal Power Station and Power Units Table 41-3 UBP PerakGrati Thermal Power Station and Power Units Table 41-4 UBP Bali Power Units List Table 41-5 Outline of Proposed Plans Table 41-6 Results of Economic Analysis Table 41-7 Result of Financial Analysis Table 41-8 Measures toward Implementation Table 41-9 Economic Comparison amp Financial Analysis for Proposed Repowering Plans Table 41-10 Economic Analysis for Each Power Station Basis Table 41-11 Economic Analysis for Oil Reduction Plan Table 41-12 Financial Analysis for Each Power Station Basis Table 41-13 Financial Analysis for Oil Reduction Plan Table 41-14 (1) Scoping Results of the Repowering Plan in Tambak Lorok Thermal Power Station Table 41-14 (2) Scoping Results of the Repowering Plan in Grati Thermal Power Station

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - vi -

Table 41-14 (3) Scoping Results of the Repowering Plan in Gilimanuk Thermal Power Station Table 41-15 (1) Scoping Results of the Improvement Plan in UBP Semarang Table 41-15 (2) Scoping Results of the Improvement Plan in UBP PerakGrati Table 41-15 (3) Scoping Results of the Improvement Plan in UBP Bali Table 41-16 (1) Draft Outline of KA-ANDAL for Repowering Plan (Tambak Lorok Power

Station) Table 41-16 (2) Draft Outline of KA-ANDAL for Repowering Plan (Gilimanuk Power Station) Table 42-1 Proposed Rehabilitation Modification and Repowering Plans Table 51-1 Examples of Common Indicators Table 51-2 Key Performance Indicators for Reliability Management Table 52-1 Implementation Procedure of Scheduled Inspection Table 52-2 Sharing of Roles Table 52-3 Scheduled Inspection Shortening Method (Questionnaire Result Summary

Sheet) Table 54-1 Regulated Electricity related Accident Report Table 55-1 Items for Operation Management Table 55-2 Routine Inspection Items Table 61-1 Achievement of RLA and RehabilitationModification Table 61-2 Result of Questionnaire for Technology Transfer Table 61-3 Level of Understanding for Technology Transfer (713 714) Table 61-4 Result of Questionnaire for Technology Transfer Table 61-5 Level of Understanding for Technology Transfer (724) Table 7-1 Recommendations Table 7-2 Summary of Objective 16 Power Stations relating to Operation and Maintenance

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- vii - Draft Final Report

LIST OF FIGURES

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line Figure 21-1 Southerly 500 kV Transmission Line Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO Figure 26-1 (1) Organization Chart for Ministry Energy and Mineral Resources Figure 26-1 (2) Organization Chart for MEMR (Environmental Section) Figure 26-2 Involvement Procedure for Public Process of AMDAL Figure 26-3 Procedure for Implementation of Environmental Impact Assessment Figure 31-1 Distribution of Gas from Producer to UP Gresik Figure 32-1 Daily Load Curve in Java-Bali Regions (22 August 2006) Figure 32-2 Annual Operation Performance Relating Hours () for Objective Power Stations Figure 32-3 Inflow and Spilled Water at Saguling Reservoir Figure 32-4 Reservoir Operation in Saguling and Cirata Figure 32-4 Number of Service Interruption of Transformer per Unit Figure 33-5 Power Flow Drawing in 500 kV Java-Bali (2007) Figure 33-1 500kV Power Flow in the Maximum Load of Java 2004 (September 28th 1830) Figure 33-2 Service Interruptions by Source of Faults (times) Figure 33-3 Number of Service Interruptions of Transmission Line per 100 km Circuit Figure 41-1 Gilimanuk Power Station Layout Figure 41-2 UBP Semarang Three Power Stations Figure 41-3 Grati Power Station Layout Figure 41-4 UBP Bali Three Power Stations and Submarine Cables Figure 41-5(1) Topography of Power Plant in Surrounding (Tambak Lorok Power Station) Figure 41-5(2) Topography of power Plant in Surrounding (Grati Power Station) Figure 41-5(3) Topography of Power Plant in Surrounding (Gilimanuk Power Station) Figure 51-1 Comparison with NERC for EAF (Gresik power station) Figure 51-2 Flowchart of Maintenance Optimization Program at PJB Figure 51-3 Result of the Assessment (quoted from P17-Plant Assessment Gresik) Figure 51-4 Asset Management Performance Meter for Gresik Figure 52-1 Measurement Points Figure 52-2 Measurement Flow for Key Inspecting System Figure 52-3 Flow of Inspection Procedure Figure 54-1 Relationship between Power Utility Companies and METI in Japan Figure 61-1 Operating Time (Years) for PLTU

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

1 GENERAL 11 Background

Power demand in the Republic of Indonesia has steadily increased since the economic crisis in 1997 However the power supply system to the consumers still does not seem to work efficiently and seems to become the bottleneck toward the economic recovery in Indonesia For the above reason JICA carried out the study on the optimum power sources development in Java-Bali system (Power Sector Study for the Optimum Power Sources Development) from 2001 to 2002 In the Study JICA proposed recommendations on short-term countermeasures and mid-term plans from the viewpoint of stable power supply especially in Java-Bali system because the occurrence of shortage of reserve margin for power supply in Java-Bali system in 2004 had been anticipated And the immediate implementation of those recommendations was required Based on the above needs JICA conducted ldquoBasic Study for Project Formation Related to Mining and Manufacturing (The Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in the Republic Indonesia)rdquo in June 2003 In the Preliminary Study JICA mission studied on the current situation and identified the issues relating to the improvement measures for existing power generation facilities recommended in the Study in 2003 and formulated a specified project resulting from the confirmation of needs and consultation with relevant organizations in Indonesia The specific content was stipulated in the Minutes of Meeting agreed on July 3 2003 between JICA Ministry of Energy and Mineral Resources (MEMR) and PT PLN (Persero) Based on the Project Formation Study the Government of Republic of Indonesia officially requested the Government of Japan to implement the Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in July 23 2004 and the Government of Japan accepted the request and decided to conduct the Study in 2005 The tight power supply balance in Java-Bali region envisaged at the project formation study was fortunately avoided due to the effect by tariff hike and depressing power demand such as restricted connection to new customers which had been imposed up to July 2003 In year 2004 the actual demand under ran the projected demand

In year 2005 power demand has been increasing again and exceeded the past maximum peak load On the other hand any power stations except an expansion of thermal station (Muara Tawar Gas Turbine 858 MW) have not been reinforced up to now since the economic crisis For the above reason the phenomena of shortage for power supply and appreciate reserve margin were observed since April 2005 The envisaged tight power supply balance imposing

1 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

forced-demand control for large consumers has become the realistic issue In year 2006 new power stations are scheduled to start the commercial operation On the other hand due to the increase of power demand and decrease of exploitation of gas and oil in Indonesia it is worried about stable supply of fuels for power stations Further more due to the difficulty of land acquisition transmission expansion plan cannot keep the implementation schedule which means that tight supply balance might not be resolved even though new power stations are put into operation For the above reasons the study on the improvement measures for electric power generation facilities is expected

12 Purpose of the Study

The purpose of the Study is to develop the improvement measures for existing power stations to meet the power demand in short and middle terms in Java-Bali region based on the above background and to conduct the technology transfer relating the effective and appropriate operation and maintenance for the existing power stations

13 Study Area and Scope of Work 131 Study Area

The objective power stations are the following sixteen (16) power stations in Java-Bali regions and their locations are figure below

Final Report 1 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Owner Power Station Type Fuel Total Output (MW)

Suralaya Conventional Coal 400 MWtimes4 600 MW times 3 3400Conventional MFO 50 MWtimes2

CC GasHSD (130 MW times 3 + 200 MW) times 2 BL Tanjung Priok

Gas Turbine GasHSD 26 MW times 2 1430Conventional MFO 50 MW times 2 + 200 MW Tambak Lorok

CC GasHSD (10965 MW times 3 + 188 MW) times 2BL 1334CC GasHSD 10075 MW times 3 + 15958 MW Grati

Gas Turbine HSD 10075 MW times 3 764Perak Conventional MFO 50 MW times 2 100

Gas Turbine HSD 2135 + 2010 + 4200 times 2 Pesanggaran Diesel HSD 9 units Total 6568 MW 201

Gilimanuk Gas Turbine HSD 1338 MW 134Pemaron CC HSD 488 MW times 2 + 484 MW 150Saguling Hydro - 17518 MW times 4 70072

IP

Soedirman Hydro - 6030 times 3 1809Conventional GasMFO 100 MWtimes3 + 200 MW times 2 Muara Karang

CC GasHSD 10786 MWtimes3 + 18510 MW 1209Conventional GasMFO 100 MW times 2 + 200 MW times 2 Gresik

CC GasHSD (11245 MW times 3 + 18891 MW) times 3BL 2239Paiton Conventional Coal 400 MW times 2 800Muara Tawar CC GasHSD 140 MWtimes5 + 220 MW 920Cirata Hydro - 126 MW times 8 1008

PJB

Sutami Hydro - 35 MW times 3 105

Note HSD means High Speed Diesel Oil MFO means Marine Fuel Oil CC means Combined Cycle

(as of Nov2005)

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line

1 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

132 Scope of Work

The Study is to develop the improvement measures relating to the existing power facilities and operation and maintenance based on the analyses of current situation of the objective power stations in order to reduce the gap between the installed capacity (total rated capacity approximately 19500 MW) and available power supply capacity (approximately 14500 MW) which is regarded as the cause of tight of power balance and accounted to about 5000 MW (26 of total installed capacity) The Study is consisted of the following scope of work

(1) Preliminary Survey Stage

The following survey will be carried out in order to confirm the current situation of each power facilities in Java-Bali region

1) Collection of data and information of the following items through the investigation of the relevant organization in Indonesia and electric power facilities in Java-Bali Region a) Performance of power generation facilities b) Current situation of operation maintenance and inspection c) Organization and regulation for operation maintenance and inspection d) Needs for the technology transfer on operation maintenance and inspection e) 500 kV transmission line of Java-Bali system f) Plan of fuel supply

2) Review of the related reports and other relevant information

(2) Analysis and Examination Stage

Based on the result of the Preliminary Survey Stage current situation and management system would be analyzed for each power generation facilities and necessary countermeasures would be examined The following items will be considered in each power generation facilities

1) Improvement measures of power generation facilities including rehabilitation modification and re-powering

2) Improvement measures of management for operation maintenance and inspection

3) Economic and financial analysis of the above mentioned improvement

4) Grading the power facilities in need of improvement

(3) Technology Transfer Stage

Based on the impact and the needs for the technology transfer on operation maintenance

Final Report 1 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

and inspection with are confirmed in the Preliminary Survey Stage technology transfer on operation maintenance and inspection will be conducted at the time of maintenance and inspection

(4) Recommendation Stage

Considering the results of the above mentioned stages the following plan and recommendation will be submitted

1) Rehabilitation modification or re-powering plan of the power generation facilities

2) Management plan and general guidelines of operation maintenance and inspection

3) Recommendation to the organization and regulation for enhancing the capability of operation maintenance and inspection

4) Development plan of human resources for operation maintenance and inspection

1 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

2 RECOGNITION OF CURRENT SITUATION IN JAVA-BALI REGION 21 Confirmation of Power Development Plan 211 Power Development Plan

(1) Power Development Plan based on April 25 2005

The following tables show the power development plan from the year 2005 to 2015 for Java-Bali region and whole Indonesia as of April 2005

Table 21-1 Power Development Plan in Java-Bali Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Required Energy Residents GWh 28612 30074 31640 33315 35107 37016 38984 41015 43111 45277 47515 Public GWh 3851 4012 4179 4352 4534 4719 4868 5022 5181 5345 5514 Commercial GWh 13013 14526 16202 18060 20121 22478 25102 28024 31279 34906 38948 Industry GWh 35674 38484 41759 45439 49508 54205 59176 64515 70290 76557 83372Required Total GWh 81150 87095 93779 101166 109269 118418 128131 138576 149861 162085 175350Growth Rate - 73 77 79 80 84 82 82 81 82 8 System Loss (TampD) 114 110 104 103 103 102 101 101 100 100 100 Station Use 4 4 4 4 4 4 4 4 4 3 3Total Loss 15 15 14 14 14 14 14 14 14 13 13Load Factor 72 72 72 73 73 73 74 74 74 74 7Generation GWh 93665 100196 107274 115680 124861 135264 146261 158125 170889 183208 198201Peak Load MW 14851 15886 17008 18090 19525 21152 22563 24393 26362 28262 30575 Capacity at the beginning of the Year MW 18658 18658 21573 22298 23823 25773 28153 30296 32002 34363 36684Committed Project PLN Portion 0 730 60 945 720 0 0 0 0 0 0Muara Karang Repowering PLTGU 720Muara Tawar Extension PLTGU 225Priok Extension PLTGU 720Pemaron Extension PLTGU 50Cilegon PLTGU 730Cibuni PLTP 10 Private Portion 0 2040 290 580 0 0 0 0 0 0 0Tanjung Jati B 12 PLTU 1320Cilacap 1-2 PLTU 600Kamojang 4 PLTP 60Wayang Windu PLTP 110Dieng PLTP 60 60Darajat 3 PLTP 110Patuha PLTP 60 120Bedugul PLTP 10Anyer PLTGU 400New Project Plan Addition of New Generator 0 145 375 0 1230 2380 2330 1890 2360 2320 2720Muara Tawar Add On 2 PLTGU 145 225Kamojang 5 PLTP 60PLTU PLTU 500 660 1200 660 660 1320 1320PLTG PLTG 200 400 200 400PLTGU PLTGU 150 730 1460 730 730 1000 1000 1000Pump Storage Upper Cisokan PLTA 500 500 Total Additional Capacity MW 0 2915 725 1525 1950 2380 2330 1890 2360 2320 2720Total System Capacity MW 18658 21573 22298 23823 25773 28153 30483 32186 34362 36683 39404Reserve Margin 26 36 31 32 32 33 35 32 30 30 29Required Capacity MW 20048 21446 22961 24421 26359 28556 29332 31711 34271 36741 39748Shortage or Surplus MW 1390 -127 663 598 586 403 -1151 -475 -91 58 344

2

4

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG

RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

2 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 2: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

PREFACE

In response to a request from the Government of Republic of Indonesia the Government of Japan decided to conduct the Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia and the study was implemented by the Japan International Cooperation Agency (JICA) JICA selected and dispatched a study team headed by Mr Yasuharu Matsuda of the NEWJEC Inc and consist of NEWJEC Inc and KANSAI Electric Power Co Inc to Indonesia five times from November 2005 to October 2006 The study team held discussions with the officials concerned of the Government of Indonesia and PT PLN (Persero) and conducted related field surveys After returning to Japan the study team compiled the final results in this report I hope this report will contribute to improvement of electric power generation facilities and to enhancement of friendly relations between our two countries I wish to express my sincere appreciation to the officials concerned of the Government of Indonesia for their close cooperation throughout the study

November 2006

Tadashi IZAWA Vice President Japan International Cooperation Agency

November 2006

LETTER OF TRANSMITTAL

Mr Tadashi Izawa Vice President Japan International Cooperation Agency Tokyo Japan We are pleased to submit to you the report on the Study on the Improvement Measures for Electric Power Generation facilities in Java-Bali Region in the Republic of Indonesia This study was conducted by NEWJEC Inc in association with KANSAI Electric Power Company Co Inc under a contract to JICA in a period from October 2005 to November 2006 During the course of the study the study team visited objective sixteen power stations and developed improvement measures for electric power generation facilities including operation and maintenance to meet a shortmedium-term power demand in the relevant region Concerning power generation facilities repowering plans in combination with shutdown of the existing less efficient power stations were proposed in consideration of a current expensive fuel oil For operation and maintenance aspects effective measures to prevent the current frequent forced outages were proposed based on the analysis of causes of forced outages and the current situation Furthermore technology transfer relating to Remaining Life Assessment aiming for effective and appropriate operation and maintenance was conducted We dearly wish that our proposed measures will contribute to the improvement of reliability of power supply and to the alleviation of the current tight balance of power supply-demand in Java-Bali region We would like to take this opportunity to express our sincere gratitude to your Agency the Ministry of Foreign Affairs and the Ministry of Economy Trade and Industry We are also most grateful for the cooperation and assistance from the officials and personnel concerned in Indonesia the Ministry of Energy and Mineral Resources PT PLN (Persero) Indonesia Power PJB and each power station

Very truly yours __________________________ Yasuharu Matsuda Team Leader The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Abbreviation Table Abbreviation Full Description in English (Indonesian)

ADB Asian Development Bank

AH Air Heater

AI Annual Inspection

ANDAL Environmental Impact Analysis

AVR Automatic Voltage Control System

BAPPENAS National Development Planning Agency (Badan Perencanaan Pembanguanan Nasional)

BFP Boiler Feed Water Pump

BLK Block

BP British Petroleum

BPMIGAS Executive Agency for Upstream Oil and Gas Business Activity (Badan Pelaksana Kegiatan Usaha Hulu Minyak Dan Gas Bumi)

CB Circuit Breaker

CBM Condition Based Maintenance

CDF Computer Fluid Dynamics

CWP Circulating Water Pump or Cooling Water Pump

DSS Daily Start and Stop

De-NOx Denitration

De-SOx Desulfurization

EIAAMDAL Environmental Impact Assessment

EIRR Economic Internal Rate of Return

FIRR Financial Internal Rate of Return

FOH Forced Outage Hours

FOH (L) Forced Outage Hours caused by power grid system

FOH(D) Forced Outage Hours caused by power station

GI General Inspection

GIB Gas Insulated Busbar

GIS Gas Insulated Switchgear

GOV Governor

HHV High Heat Value

HP High Pressure

HRSG Heat Recovery Steam Generator

HSD High Speed Diesel Oil

I amp C Instrumentation and Control

IP Indonesia Power

IP Intermediate Pressure

IPP Independent Power Producer

JBIC Japan Bank for International Cooperation

JICA Japan International Cooperation Agency

KA ndash ANDAL Environmental Impact Analysis Term of Reference

- 1 - Draft Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Abbreviation Full Description in English (Indonesian)

LFC Load Frequency Control

LHV Low Heat Value

LITBANG PLN Research and Development Center for Electricity (PT PLN Penelitian dan Pengembangan Ketenagalistrikan)

LNG Liquid Natural Gas

LP Low Pressure

MELCO Mitsubishi Electric Corporation

MEMR Ministry of Energy and Mineral Resources

METI Ministry of Economy Trade and Industry

MFO Marine Fuel Oil

MHI Mitsubishi Heavy Industries

MO Major Overhaul

MOH Maintenance Outage Hours

NG Natural Gas

P3B Jawa Bali Transmission and Load Dispatching Center (Penyaluran Dan Pusat Pengatur Beban Jawa Bali)

PJB PLN Java Bali Power Company (PT Pembangkitan Jawa-Bali)

PLN Indonesia Electricity Corporation (Perusahaan Umum Listrik Negara PERSERO)

PLTA Hydro Power Plant

PLTD Diesel Power Plant

PLTG Gas Turbine Power Plant

PLTGU Combined Cycle Power Plant

PLTP Geothermal Power Plant

PLTU Steam Power Plant

POH Planned Outage Hours

RH Re-heater

RKL UKL Environmental Management Plan

RLA Remaining Life Assessment

RPL UPL Environmental Monitoring Plan

RSH Reserve Shutdown Hours

Rp Indonesian monetary unit (1 US$ = 9000 Rp in 2005)

SCADA Sequential Control and data Acquisition System

SH Super Heater

SH Service Hours

TIT Turbine Inlet Temperature

UBP Generation Business Unit (Unit Busnis Pembangkitan)

WB World Bank

WSS Weekly Start and Stop

WW Water Wall

Draft Final Report - 2 -

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Unit Table Abbreviation Unit

bbl Barrel (1 bbl = 159 litter)

GWh Gigawatt-hour

kW Kilowatt

kWh Kilowatt-hour ( 1 kWh = 860 kcal) (1 kcal = 3968 BTU)

MMBTU 106 British Thermal Unit (MM = 106)

MMSCF 106 Standard Cubic Feet (MM = 106)

mmscfd Million Standard Cubic Feet per Day

MSCF 103 Standard Cubic Feet (M = 103)

MVA Mega-volt-ampere

MW Megawatt

MWh Megawatt-hour

VA Volt-ampere

References

(1) ldquoThe Project Formation Study for the Improvement of Utilization of Electric Power Facilities in Java-Bali Region in the Republic of Indonesiardquo September 2003 JICA

(2) ldquoThe Preliminary Study for the Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Regionrdquo June 29 2005 JICA

(3) ldquoBasic Strategy of Japanrsquos ODA Loan (The Medium-Term Strategy for Overseas Economic Cooperation)rdquo April 2005 Japan Bank for International Cooperation

(4) ldquoEx-post Evaluation Report on ODA Loan Project 1999 (Gas Firing Modification Works of Gresik Steam Power Plant Units III and IV)rdquo Japan Bank for International Cooperation

(5) ldquoEx-post Evaluation Report on ODA Loan Project 2002 (Priok Steam Power Plant Unit 3 amp 4 Rehabilitation Project)rdquo Japan Bank for International Cooperation

(6) ldquoStudy Report for CDMJI 2004 (Feasibility Study on the Effective Utilization of Biogas Recovery at Waste Disposal in Indonesia)rdquo 2004 KAJIMA Corporation and YACHIYO Engineering CO LTD

(7) ldquoPolicy Working Paper 2438 (Measurements of Poverty in Indonesia 1996 1999 and Beyond)rdquo 2000 The World Bank

- 3 - Draft Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- i - Draft Final Report

TABLE OF CONTENTS 1 General 1 - 1 11 Background 1 - 1 12 Purpose of the Study 1 - 2 13 Study Area and Scope of Work 1 - 2

131 Study Area 1 - 2 132 Scope of Work 1 - 4

2 Recognition of Current Situation in Java-Bali Region 2 - 1 21 Confirmation of Power Development Plan 2 - 1

211 Power Development Plan 2 - 1 212 Transmission System Expansion Plan 2 - 6

22 Confirmation of Fuel Supply Plan 2 - 9 221 Fuel Oil Prices 2 - 9 222 Natural Gas 2 - 9 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region 2 - 11

23 Confirmation of Financial Status of PLN and Power Generation Companies 2 - 12 231 PLN 2 - 12 232 PJB 2 - 14 233 Indonesia Power (IP) 2 - 15

24 Review of Collected Data and Information Relating to Technology Transfer 2 - 16 241 Thermal Power Station 2 - 16 242 Hydropower Station 2 - 19

25 Current Status of JBIC Export Credit 2 - 22 251 Agreement on Export Credit Line 2 - 22 252 Basic Condition of Export Credit Line 2 - 22 253 Current Status of Export Credit Line Procedure in Indonesia 2 - 23 254 Export Credit Line Currently Planned by PLN 2 - 24

26 Confirmation of Environmental Regulation Relating for Power Sector 2 - 26 261 Background of Environmental and Social Consideration in Indonesia 2 - 26 262 Institution of Environmental and Social Consideration and Legal Framework 2 - 27 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities 2 - 29 264 Environmental Quality 2 - 31 265 Stakeholder 2 - 32

3 Review of Existing Electric Power Generation Facilities 3 - 1 31 Confirmation of Current Status and Issues Relating to Facilities 3 - 1

311 Thermal Power Stations 3 - 1 312 Hydropower Stations 3 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - ii -

32 Confirmation of Current Status and Issues Relating to Operation and Maintenance 3 - 57 321 Thermal Power Stations 3 - 57 322 Hydropower Stations 3 - 95

33 Confirmation of Current Status and Recommendation on Improvement Relating to the Existing Power Facilities 3 -137 331 System Stability 3 -137 332 Existing Transmission Substation Facilities and Availability 3 -138 333 Number of Service Interruptions 3 -139 334 Frequency 3 -141 335 Voltage 3 -141

4 Rehabilitation Modification and Repowering Plans based on Existing Facilities 4 - 1 41 Thermal Power Stations 4 - 1

411 Technical Study 4 - 1 412 Economic Financial Analysis 4 - 17 413 Environmental and Social Consideration 4 - 39

42 Hydropower Stations 4 - 59 421 Technical Study 4 - 59 422 Economic Financial Analysis 4 - 60 423 Environmental and Social Consideration 4 - 60

5 Improvement Measures relating to Operation Maintenance and Inspection 5 - 1 51 Toward Improvement of Operation Performance 5 - 1

511 PLN and North American Reliability Council (NERC) 5 - 1 512 Maintenance Optimization Program (MOP) 5 - 2

52 Thermal Power Station 5 - 5 521 Improvements to prevent Routine Accidents and Troubles 5 - 6 522 Improvement Plans of Scheduled Inspection Work from Operational Aspect 5 - 18

53 Hydropower Stations 5 - 25 54 Regulations related to Power Utilities Companies in Japan 5 - 28

541 Regulations Related to Electricity Utilities Industry Law 5 - 28 542 Other Related Regulations and Qualified Personnel in Japan 5 - 35

55 Guideline and Management Plan for Thermal Power Station 5 - 37 551 System and Regulations on the Operation MaintenanceInspection Management 5 - 37 552 Management Plans and Guideline for the Operation Maintenance Inspection Management of the Existing Thermal Power Equipment 5 - 41 553 Human Resources Development 5 - 45 554 Safety Management 5 - 47

56 Guideline and Management Plan for Hydropower Station 5 - 49 561 Items for Operation Job 5 - 49 562 Items for Maintenance Job 5 - 50

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- iii - Draft Final Report

563 Items for Training 5 - 52 564 Items for Safety Work 5 - 56 565 Sample of Regulation Rule Standard Manual for Operation Maintenance and Safety 5 - 57

6 Technology Transfer 6 - 1 61 Thermal Power Station 6 - 1

611 Background 6 - 1 612 Technology Transfer 6 - 4 613 List of Participants 6 - 16 614 List of Distributed Material in the Technology Transfer 6 - 18

62 Hydropower Station 6 - 20 621 Background 6 - 20 622 Technology Transfer 6 - 22 623 List of Participants 6 - 26 624 List of Distributed Material in the Technology Transfer 6 - 26

7 Conclusion and Recommendation 7 - 1 71 Conclusion 7 - 1

711 Thermal Power Stations 7 - 1 712 Hydropower Stations 7 - 3 713 Power Facilities (Transmission Line and Substation) 7 - 3 714 Technology Transfer for Remaining Life Assessment (RLA) 7 - 3

72 Recommendation 7 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - iv -

LIST OF TABLES Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Table 21-1 Power Development Plan in Java-Bali Region Table 21-2 Power Development Plan for Whole Indonesia Table 21-3 Power Development Plan by Fuel Type Table 21-4 Announcement of Coal Fired Power Plant Projects Table 22-1 Gas Demand and Supply Balance from 2006 to 2015 Table 23-1 Profit and Loss Statement of PLN Table 23-2 Profit and Loss Statement of PJB Table 23-3 Profit and Loss Statement of IP Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Table 25-1 Loan Condition of JBIC Export Credit Table 26-1 Ambient Air Quality Standards Table 26-2 Emission Gas Standards Table 26-3 Ambient Water Quality Standards Table 26-4 Ambient Sea Water Quality Standards Table 26-5 Wastewater Standards Table 26-6 Noise Level Standards Table 26-7 Vibration Level Standards Table 26-8 Odor Standards Table 31-1 Summary of Performance and Capacity Data of Objective 12 Thermal Power

Stations Table 31-2 Capacity Data Summaries of 12 Thermal Power Stations Table 31-3 Capacity Derating Summaries on PLTGUsPLTGs Table 31-4 Main Features for Muara Tawar (PJB) Power Station Table 31-5 Main Features for Gresik Power Station Table 31-6 Main Features for Paiton Power Station Table 31-7 Main Features for Perak Power Station Table 31-8 Main Features for Tanjung Priok Power Station Table 31-9 Main Features for Muara Karang Power Station Table 31-10 Main Feature for Tambak Lorok Power Station Table 31-11 Main Features for Grati Power Station Table 31-12 Main Features for Suralaya Power Station Table 31-13 Main Features for Pesanggaran Power Station Table 31-14 Main Features for Gilimanuk Power Station Table 31-15 Main Features for Pemaron Power Station Table 31-16 (1) Original Proposals of Rehabilitation Modification and Repowering Plans for IP Table 31-16 (2) Original Proposals of Rehabilitation Modification and Repowering Plans for PJB

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- v - Draft Final Report

Table 31-17 Additional Proposals of Oil Reduction Plans Table 31-18 Final Proposals for Further Study Table 31-19 Main Features of Objective Hydropower Stations Table 31-20 Annuals Scheduled Outage and Forced Outage Hour (Saguling) Table 31-21 Analysis Scheduled Outage and Forced Outage Hour (Cirata) Table 31-22 Analysis Scheduled Outage and Forced Outage Hour (Soedirman) Table 31-23 Analysis Scheduled Outage and Forced Outage Hour (Sutami) Table 32-1 Forced Outage (Times) for Thermal Power Stations Table 32-2 Forced Outage (Hours) for Thermal Power Stations Table 32-3 Number of Forced Outages (Times) for PLTU Table 32-4 Number of Forced Outages (Times) for PLTG Table 32-5 Number of Forced Outages (Times) for PLTGU Table 32-6 Records of Scheduled MaintenanceInspection for 2003 2004 and 2005 by Unit

Type Table 32-7 PlansActual of Scheduled MaintenanceInspection for 2006 by Unit Type

(As of July 2006) Table 32-8 System for Maintenance Division at Power Station Table 32-9 Sharing of Role between Maintenance Department of the Power Station and

Maintenance Business Unit (UBHARUHAR) Table 32-10 Support System in UBHAR for Scheduled MaintenanceInspection Work Table 32-11(1)~(4) Summary of Forced Outage for 2003 2004 and 2005 at Each Unit Type Table 32-12(1)~(11) Summary of Forced Outage for 2003 2004 and 2005 at Each Power Station Table 32-13 Cause of Scheduled OutageForced Outage amp Outage Hour (Saguling) Table 32-14 Cause of Scheduled OutageForced Outage amp Outage Hour (Cirata) Table 32-15 Cause of Scheduled OutageForced Outage amp Outage Hour (Soedirman) Table 32-16 Cause of Scheduled OutageForced Outage amp Outage Hour (Sutami) Table 41-1 Final Plans for Further Study at 2nd Steering Committee Table 41-2 UBP Semarang Thermal Power Station and Power Units Table 41-3 UBP PerakGrati Thermal Power Station and Power Units Table 41-4 UBP Bali Power Units List Table 41-5 Outline of Proposed Plans Table 41-6 Results of Economic Analysis Table 41-7 Result of Financial Analysis Table 41-8 Measures toward Implementation Table 41-9 Economic Comparison amp Financial Analysis for Proposed Repowering Plans Table 41-10 Economic Analysis for Each Power Station Basis Table 41-11 Economic Analysis for Oil Reduction Plan Table 41-12 Financial Analysis for Each Power Station Basis Table 41-13 Financial Analysis for Oil Reduction Plan Table 41-14 (1) Scoping Results of the Repowering Plan in Tambak Lorok Thermal Power Station Table 41-14 (2) Scoping Results of the Repowering Plan in Grati Thermal Power Station

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - vi -

Table 41-14 (3) Scoping Results of the Repowering Plan in Gilimanuk Thermal Power Station Table 41-15 (1) Scoping Results of the Improvement Plan in UBP Semarang Table 41-15 (2) Scoping Results of the Improvement Plan in UBP PerakGrati Table 41-15 (3) Scoping Results of the Improvement Plan in UBP Bali Table 41-16 (1) Draft Outline of KA-ANDAL for Repowering Plan (Tambak Lorok Power

Station) Table 41-16 (2) Draft Outline of KA-ANDAL for Repowering Plan (Gilimanuk Power Station) Table 42-1 Proposed Rehabilitation Modification and Repowering Plans Table 51-1 Examples of Common Indicators Table 51-2 Key Performance Indicators for Reliability Management Table 52-1 Implementation Procedure of Scheduled Inspection Table 52-2 Sharing of Roles Table 52-3 Scheduled Inspection Shortening Method (Questionnaire Result Summary

Sheet) Table 54-1 Regulated Electricity related Accident Report Table 55-1 Items for Operation Management Table 55-2 Routine Inspection Items Table 61-1 Achievement of RLA and RehabilitationModification Table 61-2 Result of Questionnaire for Technology Transfer Table 61-3 Level of Understanding for Technology Transfer (713 714) Table 61-4 Result of Questionnaire for Technology Transfer Table 61-5 Level of Understanding for Technology Transfer (724) Table 7-1 Recommendations Table 7-2 Summary of Objective 16 Power Stations relating to Operation and Maintenance

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- vii - Draft Final Report

LIST OF FIGURES

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line Figure 21-1 Southerly 500 kV Transmission Line Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO Figure 26-1 (1) Organization Chart for Ministry Energy and Mineral Resources Figure 26-1 (2) Organization Chart for MEMR (Environmental Section) Figure 26-2 Involvement Procedure for Public Process of AMDAL Figure 26-3 Procedure for Implementation of Environmental Impact Assessment Figure 31-1 Distribution of Gas from Producer to UP Gresik Figure 32-1 Daily Load Curve in Java-Bali Regions (22 August 2006) Figure 32-2 Annual Operation Performance Relating Hours () for Objective Power Stations Figure 32-3 Inflow and Spilled Water at Saguling Reservoir Figure 32-4 Reservoir Operation in Saguling and Cirata Figure 32-4 Number of Service Interruption of Transformer per Unit Figure 33-5 Power Flow Drawing in 500 kV Java-Bali (2007) Figure 33-1 500kV Power Flow in the Maximum Load of Java 2004 (September 28th 1830) Figure 33-2 Service Interruptions by Source of Faults (times) Figure 33-3 Number of Service Interruptions of Transmission Line per 100 km Circuit Figure 41-1 Gilimanuk Power Station Layout Figure 41-2 UBP Semarang Three Power Stations Figure 41-3 Grati Power Station Layout Figure 41-4 UBP Bali Three Power Stations and Submarine Cables Figure 41-5(1) Topography of Power Plant in Surrounding (Tambak Lorok Power Station) Figure 41-5(2) Topography of power Plant in Surrounding (Grati Power Station) Figure 41-5(3) Topography of Power Plant in Surrounding (Gilimanuk Power Station) Figure 51-1 Comparison with NERC for EAF (Gresik power station) Figure 51-2 Flowchart of Maintenance Optimization Program at PJB Figure 51-3 Result of the Assessment (quoted from P17-Plant Assessment Gresik) Figure 51-4 Asset Management Performance Meter for Gresik Figure 52-1 Measurement Points Figure 52-2 Measurement Flow for Key Inspecting System Figure 52-3 Flow of Inspection Procedure Figure 54-1 Relationship between Power Utility Companies and METI in Japan Figure 61-1 Operating Time (Years) for PLTU

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

1 GENERAL 11 Background

Power demand in the Republic of Indonesia has steadily increased since the economic crisis in 1997 However the power supply system to the consumers still does not seem to work efficiently and seems to become the bottleneck toward the economic recovery in Indonesia For the above reason JICA carried out the study on the optimum power sources development in Java-Bali system (Power Sector Study for the Optimum Power Sources Development) from 2001 to 2002 In the Study JICA proposed recommendations on short-term countermeasures and mid-term plans from the viewpoint of stable power supply especially in Java-Bali system because the occurrence of shortage of reserve margin for power supply in Java-Bali system in 2004 had been anticipated And the immediate implementation of those recommendations was required Based on the above needs JICA conducted ldquoBasic Study for Project Formation Related to Mining and Manufacturing (The Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in the Republic Indonesia)rdquo in June 2003 In the Preliminary Study JICA mission studied on the current situation and identified the issues relating to the improvement measures for existing power generation facilities recommended in the Study in 2003 and formulated a specified project resulting from the confirmation of needs and consultation with relevant organizations in Indonesia The specific content was stipulated in the Minutes of Meeting agreed on July 3 2003 between JICA Ministry of Energy and Mineral Resources (MEMR) and PT PLN (Persero) Based on the Project Formation Study the Government of Republic of Indonesia officially requested the Government of Japan to implement the Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in July 23 2004 and the Government of Japan accepted the request and decided to conduct the Study in 2005 The tight power supply balance in Java-Bali region envisaged at the project formation study was fortunately avoided due to the effect by tariff hike and depressing power demand such as restricted connection to new customers which had been imposed up to July 2003 In year 2004 the actual demand under ran the projected demand

In year 2005 power demand has been increasing again and exceeded the past maximum peak load On the other hand any power stations except an expansion of thermal station (Muara Tawar Gas Turbine 858 MW) have not been reinforced up to now since the economic crisis For the above reason the phenomena of shortage for power supply and appreciate reserve margin were observed since April 2005 The envisaged tight power supply balance imposing

1 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

forced-demand control for large consumers has become the realistic issue In year 2006 new power stations are scheduled to start the commercial operation On the other hand due to the increase of power demand and decrease of exploitation of gas and oil in Indonesia it is worried about stable supply of fuels for power stations Further more due to the difficulty of land acquisition transmission expansion plan cannot keep the implementation schedule which means that tight supply balance might not be resolved even though new power stations are put into operation For the above reasons the study on the improvement measures for electric power generation facilities is expected

12 Purpose of the Study

The purpose of the Study is to develop the improvement measures for existing power stations to meet the power demand in short and middle terms in Java-Bali region based on the above background and to conduct the technology transfer relating the effective and appropriate operation and maintenance for the existing power stations

13 Study Area and Scope of Work 131 Study Area

The objective power stations are the following sixteen (16) power stations in Java-Bali regions and their locations are figure below

Final Report 1 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Owner Power Station Type Fuel Total Output (MW)

Suralaya Conventional Coal 400 MWtimes4 600 MW times 3 3400Conventional MFO 50 MWtimes2

CC GasHSD (130 MW times 3 + 200 MW) times 2 BL Tanjung Priok

Gas Turbine GasHSD 26 MW times 2 1430Conventional MFO 50 MW times 2 + 200 MW Tambak Lorok

CC GasHSD (10965 MW times 3 + 188 MW) times 2BL 1334CC GasHSD 10075 MW times 3 + 15958 MW Grati

Gas Turbine HSD 10075 MW times 3 764Perak Conventional MFO 50 MW times 2 100

Gas Turbine HSD 2135 + 2010 + 4200 times 2 Pesanggaran Diesel HSD 9 units Total 6568 MW 201

Gilimanuk Gas Turbine HSD 1338 MW 134Pemaron CC HSD 488 MW times 2 + 484 MW 150Saguling Hydro - 17518 MW times 4 70072

IP

Soedirman Hydro - 6030 times 3 1809Conventional GasMFO 100 MWtimes3 + 200 MW times 2 Muara Karang

CC GasHSD 10786 MWtimes3 + 18510 MW 1209Conventional GasMFO 100 MW times 2 + 200 MW times 2 Gresik

CC GasHSD (11245 MW times 3 + 18891 MW) times 3BL 2239Paiton Conventional Coal 400 MW times 2 800Muara Tawar CC GasHSD 140 MWtimes5 + 220 MW 920Cirata Hydro - 126 MW times 8 1008

PJB

Sutami Hydro - 35 MW times 3 105

Note HSD means High Speed Diesel Oil MFO means Marine Fuel Oil CC means Combined Cycle

(as of Nov2005)

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line

1 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

132 Scope of Work

The Study is to develop the improvement measures relating to the existing power facilities and operation and maintenance based on the analyses of current situation of the objective power stations in order to reduce the gap between the installed capacity (total rated capacity approximately 19500 MW) and available power supply capacity (approximately 14500 MW) which is regarded as the cause of tight of power balance and accounted to about 5000 MW (26 of total installed capacity) The Study is consisted of the following scope of work

(1) Preliminary Survey Stage

The following survey will be carried out in order to confirm the current situation of each power facilities in Java-Bali region

1) Collection of data and information of the following items through the investigation of the relevant organization in Indonesia and electric power facilities in Java-Bali Region a) Performance of power generation facilities b) Current situation of operation maintenance and inspection c) Organization and regulation for operation maintenance and inspection d) Needs for the technology transfer on operation maintenance and inspection e) 500 kV transmission line of Java-Bali system f) Plan of fuel supply

2) Review of the related reports and other relevant information

(2) Analysis and Examination Stage

Based on the result of the Preliminary Survey Stage current situation and management system would be analyzed for each power generation facilities and necessary countermeasures would be examined The following items will be considered in each power generation facilities

1) Improvement measures of power generation facilities including rehabilitation modification and re-powering

2) Improvement measures of management for operation maintenance and inspection

3) Economic and financial analysis of the above mentioned improvement

4) Grading the power facilities in need of improvement

(3) Technology Transfer Stage

Based on the impact and the needs for the technology transfer on operation maintenance

Final Report 1 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

and inspection with are confirmed in the Preliminary Survey Stage technology transfer on operation maintenance and inspection will be conducted at the time of maintenance and inspection

(4) Recommendation Stage

Considering the results of the above mentioned stages the following plan and recommendation will be submitted

1) Rehabilitation modification or re-powering plan of the power generation facilities

2) Management plan and general guidelines of operation maintenance and inspection

3) Recommendation to the organization and regulation for enhancing the capability of operation maintenance and inspection

4) Development plan of human resources for operation maintenance and inspection

1 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

2 RECOGNITION OF CURRENT SITUATION IN JAVA-BALI REGION 21 Confirmation of Power Development Plan 211 Power Development Plan

(1) Power Development Plan based on April 25 2005

The following tables show the power development plan from the year 2005 to 2015 for Java-Bali region and whole Indonesia as of April 2005

Table 21-1 Power Development Plan in Java-Bali Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Required Energy Residents GWh 28612 30074 31640 33315 35107 37016 38984 41015 43111 45277 47515 Public GWh 3851 4012 4179 4352 4534 4719 4868 5022 5181 5345 5514 Commercial GWh 13013 14526 16202 18060 20121 22478 25102 28024 31279 34906 38948 Industry GWh 35674 38484 41759 45439 49508 54205 59176 64515 70290 76557 83372Required Total GWh 81150 87095 93779 101166 109269 118418 128131 138576 149861 162085 175350Growth Rate - 73 77 79 80 84 82 82 81 82 8 System Loss (TampD) 114 110 104 103 103 102 101 101 100 100 100 Station Use 4 4 4 4 4 4 4 4 4 3 3Total Loss 15 15 14 14 14 14 14 14 14 13 13Load Factor 72 72 72 73 73 73 74 74 74 74 7Generation GWh 93665 100196 107274 115680 124861 135264 146261 158125 170889 183208 198201Peak Load MW 14851 15886 17008 18090 19525 21152 22563 24393 26362 28262 30575 Capacity at the beginning of the Year MW 18658 18658 21573 22298 23823 25773 28153 30296 32002 34363 36684Committed Project PLN Portion 0 730 60 945 720 0 0 0 0 0 0Muara Karang Repowering PLTGU 720Muara Tawar Extension PLTGU 225Priok Extension PLTGU 720Pemaron Extension PLTGU 50Cilegon PLTGU 730Cibuni PLTP 10 Private Portion 0 2040 290 580 0 0 0 0 0 0 0Tanjung Jati B 12 PLTU 1320Cilacap 1-2 PLTU 600Kamojang 4 PLTP 60Wayang Windu PLTP 110Dieng PLTP 60 60Darajat 3 PLTP 110Patuha PLTP 60 120Bedugul PLTP 10Anyer PLTGU 400New Project Plan Addition of New Generator 0 145 375 0 1230 2380 2330 1890 2360 2320 2720Muara Tawar Add On 2 PLTGU 145 225Kamojang 5 PLTP 60PLTU PLTU 500 660 1200 660 660 1320 1320PLTG PLTG 200 400 200 400PLTGU PLTGU 150 730 1460 730 730 1000 1000 1000Pump Storage Upper Cisokan PLTA 500 500 Total Additional Capacity MW 0 2915 725 1525 1950 2380 2330 1890 2360 2320 2720Total System Capacity MW 18658 21573 22298 23823 25773 28153 30483 32186 34362 36683 39404Reserve Margin 26 36 31 32 32 33 35 32 30 30 29Required Capacity MW 20048 21446 22961 24421 26359 28556 29332 31711 34271 36741 39748Shortage or Surplus MW 1390 -127 663 598 586 403 -1151 -475 -91 58 344

2

4

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG

RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

2 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 3: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

November 2006

LETTER OF TRANSMITTAL

Mr Tadashi Izawa Vice President Japan International Cooperation Agency Tokyo Japan We are pleased to submit to you the report on the Study on the Improvement Measures for Electric Power Generation facilities in Java-Bali Region in the Republic of Indonesia This study was conducted by NEWJEC Inc in association with KANSAI Electric Power Company Co Inc under a contract to JICA in a period from October 2005 to November 2006 During the course of the study the study team visited objective sixteen power stations and developed improvement measures for electric power generation facilities including operation and maintenance to meet a shortmedium-term power demand in the relevant region Concerning power generation facilities repowering plans in combination with shutdown of the existing less efficient power stations were proposed in consideration of a current expensive fuel oil For operation and maintenance aspects effective measures to prevent the current frequent forced outages were proposed based on the analysis of causes of forced outages and the current situation Furthermore technology transfer relating to Remaining Life Assessment aiming for effective and appropriate operation and maintenance was conducted We dearly wish that our proposed measures will contribute to the improvement of reliability of power supply and to the alleviation of the current tight balance of power supply-demand in Java-Bali region We would like to take this opportunity to express our sincere gratitude to your Agency the Ministry of Foreign Affairs and the Ministry of Economy Trade and Industry We are also most grateful for the cooperation and assistance from the officials and personnel concerned in Indonesia the Ministry of Energy and Mineral Resources PT PLN (Persero) Indonesia Power PJB and each power station

Very truly yours __________________________ Yasuharu Matsuda Team Leader The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Abbreviation Table Abbreviation Full Description in English (Indonesian)

ADB Asian Development Bank

AH Air Heater

AI Annual Inspection

ANDAL Environmental Impact Analysis

AVR Automatic Voltage Control System

BAPPENAS National Development Planning Agency (Badan Perencanaan Pembanguanan Nasional)

BFP Boiler Feed Water Pump

BLK Block

BP British Petroleum

BPMIGAS Executive Agency for Upstream Oil and Gas Business Activity (Badan Pelaksana Kegiatan Usaha Hulu Minyak Dan Gas Bumi)

CB Circuit Breaker

CBM Condition Based Maintenance

CDF Computer Fluid Dynamics

CWP Circulating Water Pump or Cooling Water Pump

DSS Daily Start and Stop

De-NOx Denitration

De-SOx Desulfurization

EIAAMDAL Environmental Impact Assessment

EIRR Economic Internal Rate of Return

FIRR Financial Internal Rate of Return

FOH Forced Outage Hours

FOH (L) Forced Outage Hours caused by power grid system

FOH(D) Forced Outage Hours caused by power station

GI General Inspection

GIB Gas Insulated Busbar

GIS Gas Insulated Switchgear

GOV Governor

HHV High Heat Value

HP High Pressure

HRSG Heat Recovery Steam Generator

HSD High Speed Diesel Oil

I amp C Instrumentation and Control

IP Indonesia Power

IP Intermediate Pressure

IPP Independent Power Producer

JBIC Japan Bank for International Cooperation

JICA Japan International Cooperation Agency

KA ndash ANDAL Environmental Impact Analysis Term of Reference

- 1 - Draft Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Abbreviation Full Description in English (Indonesian)

LFC Load Frequency Control

LHV Low Heat Value

LITBANG PLN Research and Development Center for Electricity (PT PLN Penelitian dan Pengembangan Ketenagalistrikan)

LNG Liquid Natural Gas

LP Low Pressure

MELCO Mitsubishi Electric Corporation

MEMR Ministry of Energy and Mineral Resources

METI Ministry of Economy Trade and Industry

MFO Marine Fuel Oil

MHI Mitsubishi Heavy Industries

MO Major Overhaul

MOH Maintenance Outage Hours

NG Natural Gas

P3B Jawa Bali Transmission and Load Dispatching Center (Penyaluran Dan Pusat Pengatur Beban Jawa Bali)

PJB PLN Java Bali Power Company (PT Pembangkitan Jawa-Bali)

PLN Indonesia Electricity Corporation (Perusahaan Umum Listrik Negara PERSERO)

PLTA Hydro Power Plant

PLTD Diesel Power Plant

PLTG Gas Turbine Power Plant

PLTGU Combined Cycle Power Plant

PLTP Geothermal Power Plant

PLTU Steam Power Plant

POH Planned Outage Hours

RH Re-heater

RKL UKL Environmental Management Plan

RLA Remaining Life Assessment

RPL UPL Environmental Monitoring Plan

RSH Reserve Shutdown Hours

Rp Indonesian monetary unit (1 US$ = 9000 Rp in 2005)

SCADA Sequential Control and data Acquisition System

SH Super Heater

SH Service Hours

TIT Turbine Inlet Temperature

UBP Generation Business Unit (Unit Busnis Pembangkitan)

WB World Bank

WSS Weekly Start and Stop

WW Water Wall

Draft Final Report - 2 -

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Unit Table Abbreviation Unit

bbl Barrel (1 bbl = 159 litter)

GWh Gigawatt-hour

kW Kilowatt

kWh Kilowatt-hour ( 1 kWh = 860 kcal) (1 kcal = 3968 BTU)

MMBTU 106 British Thermal Unit (MM = 106)

MMSCF 106 Standard Cubic Feet (MM = 106)

mmscfd Million Standard Cubic Feet per Day

MSCF 103 Standard Cubic Feet (M = 103)

MVA Mega-volt-ampere

MW Megawatt

MWh Megawatt-hour

VA Volt-ampere

References

(1) ldquoThe Project Formation Study for the Improvement of Utilization of Electric Power Facilities in Java-Bali Region in the Republic of Indonesiardquo September 2003 JICA

(2) ldquoThe Preliminary Study for the Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Regionrdquo June 29 2005 JICA

(3) ldquoBasic Strategy of Japanrsquos ODA Loan (The Medium-Term Strategy for Overseas Economic Cooperation)rdquo April 2005 Japan Bank for International Cooperation

(4) ldquoEx-post Evaluation Report on ODA Loan Project 1999 (Gas Firing Modification Works of Gresik Steam Power Plant Units III and IV)rdquo Japan Bank for International Cooperation

(5) ldquoEx-post Evaluation Report on ODA Loan Project 2002 (Priok Steam Power Plant Unit 3 amp 4 Rehabilitation Project)rdquo Japan Bank for International Cooperation

(6) ldquoStudy Report for CDMJI 2004 (Feasibility Study on the Effective Utilization of Biogas Recovery at Waste Disposal in Indonesia)rdquo 2004 KAJIMA Corporation and YACHIYO Engineering CO LTD

(7) ldquoPolicy Working Paper 2438 (Measurements of Poverty in Indonesia 1996 1999 and Beyond)rdquo 2000 The World Bank

- 3 - Draft Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- i - Draft Final Report

TABLE OF CONTENTS 1 General 1 - 1 11 Background 1 - 1 12 Purpose of the Study 1 - 2 13 Study Area and Scope of Work 1 - 2

131 Study Area 1 - 2 132 Scope of Work 1 - 4

2 Recognition of Current Situation in Java-Bali Region 2 - 1 21 Confirmation of Power Development Plan 2 - 1

211 Power Development Plan 2 - 1 212 Transmission System Expansion Plan 2 - 6

22 Confirmation of Fuel Supply Plan 2 - 9 221 Fuel Oil Prices 2 - 9 222 Natural Gas 2 - 9 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region 2 - 11

23 Confirmation of Financial Status of PLN and Power Generation Companies 2 - 12 231 PLN 2 - 12 232 PJB 2 - 14 233 Indonesia Power (IP) 2 - 15

24 Review of Collected Data and Information Relating to Technology Transfer 2 - 16 241 Thermal Power Station 2 - 16 242 Hydropower Station 2 - 19

25 Current Status of JBIC Export Credit 2 - 22 251 Agreement on Export Credit Line 2 - 22 252 Basic Condition of Export Credit Line 2 - 22 253 Current Status of Export Credit Line Procedure in Indonesia 2 - 23 254 Export Credit Line Currently Planned by PLN 2 - 24

26 Confirmation of Environmental Regulation Relating for Power Sector 2 - 26 261 Background of Environmental and Social Consideration in Indonesia 2 - 26 262 Institution of Environmental and Social Consideration and Legal Framework 2 - 27 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities 2 - 29 264 Environmental Quality 2 - 31 265 Stakeholder 2 - 32

3 Review of Existing Electric Power Generation Facilities 3 - 1 31 Confirmation of Current Status and Issues Relating to Facilities 3 - 1

311 Thermal Power Stations 3 - 1 312 Hydropower Stations 3 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - ii -

32 Confirmation of Current Status and Issues Relating to Operation and Maintenance 3 - 57 321 Thermal Power Stations 3 - 57 322 Hydropower Stations 3 - 95

33 Confirmation of Current Status and Recommendation on Improvement Relating to the Existing Power Facilities 3 -137 331 System Stability 3 -137 332 Existing Transmission Substation Facilities and Availability 3 -138 333 Number of Service Interruptions 3 -139 334 Frequency 3 -141 335 Voltage 3 -141

4 Rehabilitation Modification and Repowering Plans based on Existing Facilities 4 - 1 41 Thermal Power Stations 4 - 1

411 Technical Study 4 - 1 412 Economic Financial Analysis 4 - 17 413 Environmental and Social Consideration 4 - 39

42 Hydropower Stations 4 - 59 421 Technical Study 4 - 59 422 Economic Financial Analysis 4 - 60 423 Environmental and Social Consideration 4 - 60

5 Improvement Measures relating to Operation Maintenance and Inspection 5 - 1 51 Toward Improvement of Operation Performance 5 - 1

511 PLN and North American Reliability Council (NERC) 5 - 1 512 Maintenance Optimization Program (MOP) 5 - 2

52 Thermal Power Station 5 - 5 521 Improvements to prevent Routine Accidents and Troubles 5 - 6 522 Improvement Plans of Scheduled Inspection Work from Operational Aspect 5 - 18

53 Hydropower Stations 5 - 25 54 Regulations related to Power Utilities Companies in Japan 5 - 28

541 Regulations Related to Electricity Utilities Industry Law 5 - 28 542 Other Related Regulations and Qualified Personnel in Japan 5 - 35

55 Guideline and Management Plan for Thermal Power Station 5 - 37 551 System and Regulations on the Operation MaintenanceInspection Management 5 - 37 552 Management Plans and Guideline for the Operation Maintenance Inspection Management of the Existing Thermal Power Equipment 5 - 41 553 Human Resources Development 5 - 45 554 Safety Management 5 - 47

56 Guideline and Management Plan for Hydropower Station 5 - 49 561 Items for Operation Job 5 - 49 562 Items for Maintenance Job 5 - 50

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- iii - Draft Final Report

563 Items for Training 5 - 52 564 Items for Safety Work 5 - 56 565 Sample of Regulation Rule Standard Manual for Operation Maintenance and Safety 5 - 57

6 Technology Transfer 6 - 1 61 Thermal Power Station 6 - 1

611 Background 6 - 1 612 Technology Transfer 6 - 4 613 List of Participants 6 - 16 614 List of Distributed Material in the Technology Transfer 6 - 18

62 Hydropower Station 6 - 20 621 Background 6 - 20 622 Technology Transfer 6 - 22 623 List of Participants 6 - 26 624 List of Distributed Material in the Technology Transfer 6 - 26

7 Conclusion and Recommendation 7 - 1 71 Conclusion 7 - 1

711 Thermal Power Stations 7 - 1 712 Hydropower Stations 7 - 3 713 Power Facilities (Transmission Line and Substation) 7 - 3 714 Technology Transfer for Remaining Life Assessment (RLA) 7 - 3

72 Recommendation 7 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - iv -

LIST OF TABLES Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Table 21-1 Power Development Plan in Java-Bali Region Table 21-2 Power Development Plan for Whole Indonesia Table 21-3 Power Development Plan by Fuel Type Table 21-4 Announcement of Coal Fired Power Plant Projects Table 22-1 Gas Demand and Supply Balance from 2006 to 2015 Table 23-1 Profit and Loss Statement of PLN Table 23-2 Profit and Loss Statement of PJB Table 23-3 Profit and Loss Statement of IP Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Table 25-1 Loan Condition of JBIC Export Credit Table 26-1 Ambient Air Quality Standards Table 26-2 Emission Gas Standards Table 26-3 Ambient Water Quality Standards Table 26-4 Ambient Sea Water Quality Standards Table 26-5 Wastewater Standards Table 26-6 Noise Level Standards Table 26-7 Vibration Level Standards Table 26-8 Odor Standards Table 31-1 Summary of Performance and Capacity Data of Objective 12 Thermal Power

Stations Table 31-2 Capacity Data Summaries of 12 Thermal Power Stations Table 31-3 Capacity Derating Summaries on PLTGUsPLTGs Table 31-4 Main Features for Muara Tawar (PJB) Power Station Table 31-5 Main Features for Gresik Power Station Table 31-6 Main Features for Paiton Power Station Table 31-7 Main Features for Perak Power Station Table 31-8 Main Features for Tanjung Priok Power Station Table 31-9 Main Features for Muara Karang Power Station Table 31-10 Main Feature for Tambak Lorok Power Station Table 31-11 Main Features for Grati Power Station Table 31-12 Main Features for Suralaya Power Station Table 31-13 Main Features for Pesanggaran Power Station Table 31-14 Main Features for Gilimanuk Power Station Table 31-15 Main Features for Pemaron Power Station Table 31-16 (1) Original Proposals of Rehabilitation Modification and Repowering Plans for IP Table 31-16 (2) Original Proposals of Rehabilitation Modification and Repowering Plans for PJB

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- v - Draft Final Report

Table 31-17 Additional Proposals of Oil Reduction Plans Table 31-18 Final Proposals for Further Study Table 31-19 Main Features of Objective Hydropower Stations Table 31-20 Annuals Scheduled Outage and Forced Outage Hour (Saguling) Table 31-21 Analysis Scheduled Outage and Forced Outage Hour (Cirata) Table 31-22 Analysis Scheduled Outage and Forced Outage Hour (Soedirman) Table 31-23 Analysis Scheduled Outage and Forced Outage Hour (Sutami) Table 32-1 Forced Outage (Times) for Thermal Power Stations Table 32-2 Forced Outage (Hours) for Thermal Power Stations Table 32-3 Number of Forced Outages (Times) for PLTU Table 32-4 Number of Forced Outages (Times) for PLTG Table 32-5 Number of Forced Outages (Times) for PLTGU Table 32-6 Records of Scheduled MaintenanceInspection for 2003 2004 and 2005 by Unit

Type Table 32-7 PlansActual of Scheduled MaintenanceInspection for 2006 by Unit Type

(As of July 2006) Table 32-8 System for Maintenance Division at Power Station Table 32-9 Sharing of Role between Maintenance Department of the Power Station and

Maintenance Business Unit (UBHARUHAR) Table 32-10 Support System in UBHAR for Scheduled MaintenanceInspection Work Table 32-11(1)~(4) Summary of Forced Outage for 2003 2004 and 2005 at Each Unit Type Table 32-12(1)~(11) Summary of Forced Outage for 2003 2004 and 2005 at Each Power Station Table 32-13 Cause of Scheduled OutageForced Outage amp Outage Hour (Saguling) Table 32-14 Cause of Scheduled OutageForced Outage amp Outage Hour (Cirata) Table 32-15 Cause of Scheduled OutageForced Outage amp Outage Hour (Soedirman) Table 32-16 Cause of Scheduled OutageForced Outage amp Outage Hour (Sutami) Table 41-1 Final Plans for Further Study at 2nd Steering Committee Table 41-2 UBP Semarang Thermal Power Station and Power Units Table 41-3 UBP PerakGrati Thermal Power Station and Power Units Table 41-4 UBP Bali Power Units List Table 41-5 Outline of Proposed Plans Table 41-6 Results of Economic Analysis Table 41-7 Result of Financial Analysis Table 41-8 Measures toward Implementation Table 41-9 Economic Comparison amp Financial Analysis for Proposed Repowering Plans Table 41-10 Economic Analysis for Each Power Station Basis Table 41-11 Economic Analysis for Oil Reduction Plan Table 41-12 Financial Analysis for Each Power Station Basis Table 41-13 Financial Analysis for Oil Reduction Plan Table 41-14 (1) Scoping Results of the Repowering Plan in Tambak Lorok Thermal Power Station Table 41-14 (2) Scoping Results of the Repowering Plan in Grati Thermal Power Station

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - vi -

Table 41-14 (3) Scoping Results of the Repowering Plan in Gilimanuk Thermal Power Station Table 41-15 (1) Scoping Results of the Improvement Plan in UBP Semarang Table 41-15 (2) Scoping Results of the Improvement Plan in UBP PerakGrati Table 41-15 (3) Scoping Results of the Improvement Plan in UBP Bali Table 41-16 (1) Draft Outline of KA-ANDAL for Repowering Plan (Tambak Lorok Power

Station) Table 41-16 (2) Draft Outline of KA-ANDAL for Repowering Plan (Gilimanuk Power Station) Table 42-1 Proposed Rehabilitation Modification and Repowering Plans Table 51-1 Examples of Common Indicators Table 51-2 Key Performance Indicators for Reliability Management Table 52-1 Implementation Procedure of Scheduled Inspection Table 52-2 Sharing of Roles Table 52-3 Scheduled Inspection Shortening Method (Questionnaire Result Summary

Sheet) Table 54-1 Regulated Electricity related Accident Report Table 55-1 Items for Operation Management Table 55-2 Routine Inspection Items Table 61-1 Achievement of RLA and RehabilitationModification Table 61-2 Result of Questionnaire for Technology Transfer Table 61-3 Level of Understanding for Technology Transfer (713 714) Table 61-4 Result of Questionnaire for Technology Transfer Table 61-5 Level of Understanding for Technology Transfer (724) Table 7-1 Recommendations Table 7-2 Summary of Objective 16 Power Stations relating to Operation and Maintenance

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- vii - Draft Final Report

LIST OF FIGURES

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line Figure 21-1 Southerly 500 kV Transmission Line Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO Figure 26-1 (1) Organization Chart for Ministry Energy and Mineral Resources Figure 26-1 (2) Organization Chart for MEMR (Environmental Section) Figure 26-2 Involvement Procedure for Public Process of AMDAL Figure 26-3 Procedure for Implementation of Environmental Impact Assessment Figure 31-1 Distribution of Gas from Producer to UP Gresik Figure 32-1 Daily Load Curve in Java-Bali Regions (22 August 2006) Figure 32-2 Annual Operation Performance Relating Hours () for Objective Power Stations Figure 32-3 Inflow and Spilled Water at Saguling Reservoir Figure 32-4 Reservoir Operation in Saguling and Cirata Figure 32-4 Number of Service Interruption of Transformer per Unit Figure 33-5 Power Flow Drawing in 500 kV Java-Bali (2007) Figure 33-1 500kV Power Flow in the Maximum Load of Java 2004 (September 28th 1830) Figure 33-2 Service Interruptions by Source of Faults (times) Figure 33-3 Number of Service Interruptions of Transmission Line per 100 km Circuit Figure 41-1 Gilimanuk Power Station Layout Figure 41-2 UBP Semarang Three Power Stations Figure 41-3 Grati Power Station Layout Figure 41-4 UBP Bali Three Power Stations and Submarine Cables Figure 41-5(1) Topography of Power Plant in Surrounding (Tambak Lorok Power Station) Figure 41-5(2) Topography of power Plant in Surrounding (Grati Power Station) Figure 41-5(3) Topography of Power Plant in Surrounding (Gilimanuk Power Station) Figure 51-1 Comparison with NERC for EAF (Gresik power station) Figure 51-2 Flowchart of Maintenance Optimization Program at PJB Figure 51-3 Result of the Assessment (quoted from P17-Plant Assessment Gresik) Figure 51-4 Asset Management Performance Meter for Gresik Figure 52-1 Measurement Points Figure 52-2 Measurement Flow for Key Inspecting System Figure 52-3 Flow of Inspection Procedure Figure 54-1 Relationship between Power Utility Companies and METI in Japan Figure 61-1 Operating Time (Years) for PLTU

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

1 GENERAL 11 Background

Power demand in the Republic of Indonesia has steadily increased since the economic crisis in 1997 However the power supply system to the consumers still does not seem to work efficiently and seems to become the bottleneck toward the economic recovery in Indonesia For the above reason JICA carried out the study on the optimum power sources development in Java-Bali system (Power Sector Study for the Optimum Power Sources Development) from 2001 to 2002 In the Study JICA proposed recommendations on short-term countermeasures and mid-term plans from the viewpoint of stable power supply especially in Java-Bali system because the occurrence of shortage of reserve margin for power supply in Java-Bali system in 2004 had been anticipated And the immediate implementation of those recommendations was required Based on the above needs JICA conducted ldquoBasic Study for Project Formation Related to Mining and Manufacturing (The Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in the Republic Indonesia)rdquo in June 2003 In the Preliminary Study JICA mission studied on the current situation and identified the issues relating to the improvement measures for existing power generation facilities recommended in the Study in 2003 and formulated a specified project resulting from the confirmation of needs and consultation with relevant organizations in Indonesia The specific content was stipulated in the Minutes of Meeting agreed on July 3 2003 between JICA Ministry of Energy and Mineral Resources (MEMR) and PT PLN (Persero) Based on the Project Formation Study the Government of Republic of Indonesia officially requested the Government of Japan to implement the Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in July 23 2004 and the Government of Japan accepted the request and decided to conduct the Study in 2005 The tight power supply balance in Java-Bali region envisaged at the project formation study was fortunately avoided due to the effect by tariff hike and depressing power demand such as restricted connection to new customers which had been imposed up to July 2003 In year 2004 the actual demand under ran the projected demand

In year 2005 power demand has been increasing again and exceeded the past maximum peak load On the other hand any power stations except an expansion of thermal station (Muara Tawar Gas Turbine 858 MW) have not been reinforced up to now since the economic crisis For the above reason the phenomena of shortage for power supply and appreciate reserve margin were observed since April 2005 The envisaged tight power supply balance imposing

1 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

forced-demand control for large consumers has become the realistic issue In year 2006 new power stations are scheduled to start the commercial operation On the other hand due to the increase of power demand and decrease of exploitation of gas and oil in Indonesia it is worried about stable supply of fuels for power stations Further more due to the difficulty of land acquisition transmission expansion plan cannot keep the implementation schedule which means that tight supply balance might not be resolved even though new power stations are put into operation For the above reasons the study on the improvement measures for electric power generation facilities is expected

12 Purpose of the Study

The purpose of the Study is to develop the improvement measures for existing power stations to meet the power demand in short and middle terms in Java-Bali region based on the above background and to conduct the technology transfer relating the effective and appropriate operation and maintenance for the existing power stations

13 Study Area and Scope of Work 131 Study Area

The objective power stations are the following sixteen (16) power stations in Java-Bali regions and their locations are figure below

Final Report 1 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Owner Power Station Type Fuel Total Output (MW)

Suralaya Conventional Coal 400 MWtimes4 600 MW times 3 3400Conventional MFO 50 MWtimes2

CC GasHSD (130 MW times 3 + 200 MW) times 2 BL Tanjung Priok

Gas Turbine GasHSD 26 MW times 2 1430Conventional MFO 50 MW times 2 + 200 MW Tambak Lorok

CC GasHSD (10965 MW times 3 + 188 MW) times 2BL 1334CC GasHSD 10075 MW times 3 + 15958 MW Grati

Gas Turbine HSD 10075 MW times 3 764Perak Conventional MFO 50 MW times 2 100

Gas Turbine HSD 2135 + 2010 + 4200 times 2 Pesanggaran Diesel HSD 9 units Total 6568 MW 201

Gilimanuk Gas Turbine HSD 1338 MW 134Pemaron CC HSD 488 MW times 2 + 484 MW 150Saguling Hydro - 17518 MW times 4 70072

IP

Soedirman Hydro - 6030 times 3 1809Conventional GasMFO 100 MWtimes3 + 200 MW times 2 Muara Karang

CC GasHSD 10786 MWtimes3 + 18510 MW 1209Conventional GasMFO 100 MW times 2 + 200 MW times 2 Gresik

CC GasHSD (11245 MW times 3 + 18891 MW) times 3BL 2239Paiton Conventional Coal 400 MW times 2 800Muara Tawar CC GasHSD 140 MWtimes5 + 220 MW 920Cirata Hydro - 126 MW times 8 1008

PJB

Sutami Hydro - 35 MW times 3 105

Note HSD means High Speed Diesel Oil MFO means Marine Fuel Oil CC means Combined Cycle

(as of Nov2005)

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line

1 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

132 Scope of Work

The Study is to develop the improvement measures relating to the existing power facilities and operation and maintenance based on the analyses of current situation of the objective power stations in order to reduce the gap between the installed capacity (total rated capacity approximately 19500 MW) and available power supply capacity (approximately 14500 MW) which is regarded as the cause of tight of power balance and accounted to about 5000 MW (26 of total installed capacity) The Study is consisted of the following scope of work

(1) Preliminary Survey Stage

The following survey will be carried out in order to confirm the current situation of each power facilities in Java-Bali region

1) Collection of data and information of the following items through the investigation of the relevant organization in Indonesia and electric power facilities in Java-Bali Region a) Performance of power generation facilities b) Current situation of operation maintenance and inspection c) Organization and regulation for operation maintenance and inspection d) Needs for the technology transfer on operation maintenance and inspection e) 500 kV transmission line of Java-Bali system f) Plan of fuel supply

2) Review of the related reports and other relevant information

(2) Analysis and Examination Stage

Based on the result of the Preliminary Survey Stage current situation and management system would be analyzed for each power generation facilities and necessary countermeasures would be examined The following items will be considered in each power generation facilities

1) Improvement measures of power generation facilities including rehabilitation modification and re-powering

2) Improvement measures of management for operation maintenance and inspection

3) Economic and financial analysis of the above mentioned improvement

4) Grading the power facilities in need of improvement

(3) Technology Transfer Stage

Based on the impact and the needs for the technology transfer on operation maintenance

Final Report 1 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

and inspection with are confirmed in the Preliminary Survey Stage technology transfer on operation maintenance and inspection will be conducted at the time of maintenance and inspection

(4) Recommendation Stage

Considering the results of the above mentioned stages the following plan and recommendation will be submitted

1) Rehabilitation modification or re-powering plan of the power generation facilities

2) Management plan and general guidelines of operation maintenance and inspection

3) Recommendation to the organization and regulation for enhancing the capability of operation maintenance and inspection

4) Development plan of human resources for operation maintenance and inspection

1 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

2 RECOGNITION OF CURRENT SITUATION IN JAVA-BALI REGION 21 Confirmation of Power Development Plan 211 Power Development Plan

(1) Power Development Plan based on April 25 2005

The following tables show the power development plan from the year 2005 to 2015 for Java-Bali region and whole Indonesia as of April 2005

Table 21-1 Power Development Plan in Java-Bali Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Required Energy Residents GWh 28612 30074 31640 33315 35107 37016 38984 41015 43111 45277 47515 Public GWh 3851 4012 4179 4352 4534 4719 4868 5022 5181 5345 5514 Commercial GWh 13013 14526 16202 18060 20121 22478 25102 28024 31279 34906 38948 Industry GWh 35674 38484 41759 45439 49508 54205 59176 64515 70290 76557 83372Required Total GWh 81150 87095 93779 101166 109269 118418 128131 138576 149861 162085 175350Growth Rate - 73 77 79 80 84 82 82 81 82 8 System Loss (TampD) 114 110 104 103 103 102 101 101 100 100 100 Station Use 4 4 4 4 4 4 4 4 4 3 3Total Loss 15 15 14 14 14 14 14 14 14 13 13Load Factor 72 72 72 73 73 73 74 74 74 74 7Generation GWh 93665 100196 107274 115680 124861 135264 146261 158125 170889 183208 198201Peak Load MW 14851 15886 17008 18090 19525 21152 22563 24393 26362 28262 30575 Capacity at the beginning of the Year MW 18658 18658 21573 22298 23823 25773 28153 30296 32002 34363 36684Committed Project PLN Portion 0 730 60 945 720 0 0 0 0 0 0Muara Karang Repowering PLTGU 720Muara Tawar Extension PLTGU 225Priok Extension PLTGU 720Pemaron Extension PLTGU 50Cilegon PLTGU 730Cibuni PLTP 10 Private Portion 0 2040 290 580 0 0 0 0 0 0 0Tanjung Jati B 12 PLTU 1320Cilacap 1-2 PLTU 600Kamojang 4 PLTP 60Wayang Windu PLTP 110Dieng PLTP 60 60Darajat 3 PLTP 110Patuha PLTP 60 120Bedugul PLTP 10Anyer PLTGU 400New Project Plan Addition of New Generator 0 145 375 0 1230 2380 2330 1890 2360 2320 2720Muara Tawar Add On 2 PLTGU 145 225Kamojang 5 PLTP 60PLTU PLTU 500 660 1200 660 660 1320 1320PLTG PLTG 200 400 200 400PLTGU PLTGU 150 730 1460 730 730 1000 1000 1000Pump Storage Upper Cisokan PLTA 500 500 Total Additional Capacity MW 0 2915 725 1525 1950 2380 2330 1890 2360 2320 2720Total System Capacity MW 18658 21573 22298 23823 25773 28153 30483 32186 34362 36683 39404Reserve Margin 26 36 31 32 32 33 35 32 30 30 29Required Capacity MW 20048 21446 22961 24421 26359 28556 29332 31711 34271 36741 39748Shortage or Surplus MW 1390 -127 663 598 586 403 -1151 -475 -91 58 344

2

4

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG

RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

2 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 4: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Abbreviation Table Abbreviation Full Description in English (Indonesian)

ADB Asian Development Bank

AH Air Heater

AI Annual Inspection

ANDAL Environmental Impact Analysis

AVR Automatic Voltage Control System

BAPPENAS National Development Planning Agency (Badan Perencanaan Pembanguanan Nasional)

BFP Boiler Feed Water Pump

BLK Block

BP British Petroleum

BPMIGAS Executive Agency for Upstream Oil and Gas Business Activity (Badan Pelaksana Kegiatan Usaha Hulu Minyak Dan Gas Bumi)

CB Circuit Breaker

CBM Condition Based Maintenance

CDF Computer Fluid Dynamics

CWP Circulating Water Pump or Cooling Water Pump

DSS Daily Start and Stop

De-NOx Denitration

De-SOx Desulfurization

EIAAMDAL Environmental Impact Assessment

EIRR Economic Internal Rate of Return

FIRR Financial Internal Rate of Return

FOH Forced Outage Hours

FOH (L) Forced Outage Hours caused by power grid system

FOH(D) Forced Outage Hours caused by power station

GI General Inspection

GIB Gas Insulated Busbar

GIS Gas Insulated Switchgear

GOV Governor

HHV High Heat Value

HP High Pressure

HRSG Heat Recovery Steam Generator

HSD High Speed Diesel Oil

I amp C Instrumentation and Control

IP Indonesia Power

IP Intermediate Pressure

IPP Independent Power Producer

JBIC Japan Bank for International Cooperation

JICA Japan International Cooperation Agency

KA ndash ANDAL Environmental Impact Analysis Term of Reference

- 1 - Draft Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Abbreviation Full Description in English (Indonesian)

LFC Load Frequency Control

LHV Low Heat Value

LITBANG PLN Research and Development Center for Electricity (PT PLN Penelitian dan Pengembangan Ketenagalistrikan)

LNG Liquid Natural Gas

LP Low Pressure

MELCO Mitsubishi Electric Corporation

MEMR Ministry of Energy and Mineral Resources

METI Ministry of Economy Trade and Industry

MFO Marine Fuel Oil

MHI Mitsubishi Heavy Industries

MO Major Overhaul

MOH Maintenance Outage Hours

NG Natural Gas

P3B Jawa Bali Transmission and Load Dispatching Center (Penyaluran Dan Pusat Pengatur Beban Jawa Bali)

PJB PLN Java Bali Power Company (PT Pembangkitan Jawa-Bali)

PLN Indonesia Electricity Corporation (Perusahaan Umum Listrik Negara PERSERO)

PLTA Hydro Power Plant

PLTD Diesel Power Plant

PLTG Gas Turbine Power Plant

PLTGU Combined Cycle Power Plant

PLTP Geothermal Power Plant

PLTU Steam Power Plant

POH Planned Outage Hours

RH Re-heater

RKL UKL Environmental Management Plan

RLA Remaining Life Assessment

RPL UPL Environmental Monitoring Plan

RSH Reserve Shutdown Hours

Rp Indonesian monetary unit (1 US$ = 9000 Rp in 2005)

SCADA Sequential Control and data Acquisition System

SH Super Heater

SH Service Hours

TIT Turbine Inlet Temperature

UBP Generation Business Unit (Unit Busnis Pembangkitan)

WB World Bank

WSS Weekly Start and Stop

WW Water Wall

Draft Final Report - 2 -

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Unit Table Abbreviation Unit

bbl Barrel (1 bbl = 159 litter)

GWh Gigawatt-hour

kW Kilowatt

kWh Kilowatt-hour ( 1 kWh = 860 kcal) (1 kcal = 3968 BTU)

MMBTU 106 British Thermal Unit (MM = 106)

MMSCF 106 Standard Cubic Feet (MM = 106)

mmscfd Million Standard Cubic Feet per Day

MSCF 103 Standard Cubic Feet (M = 103)

MVA Mega-volt-ampere

MW Megawatt

MWh Megawatt-hour

VA Volt-ampere

References

(1) ldquoThe Project Formation Study for the Improvement of Utilization of Electric Power Facilities in Java-Bali Region in the Republic of Indonesiardquo September 2003 JICA

(2) ldquoThe Preliminary Study for the Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Regionrdquo June 29 2005 JICA

(3) ldquoBasic Strategy of Japanrsquos ODA Loan (The Medium-Term Strategy for Overseas Economic Cooperation)rdquo April 2005 Japan Bank for International Cooperation

(4) ldquoEx-post Evaluation Report on ODA Loan Project 1999 (Gas Firing Modification Works of Gresik Steam Power Plant Units III and IV)rdquo Japan Bank for International Cooperation

(5) ldquoEx-post Evaluation Report on ODA Loan Project 2002 (Priok Steam Power Plant Unit 3 amp 4 Rehabilitation Project)rdquo Japan Bank for International Cooperation

(6) ldquoStudy Report for CDMJI 2004 (Feasibility Study on the Effective Utilization of Biogas Recovery at Waste Disposal in Indonesia)rdquo 2004 KAJIMA Corporation and YACHIYO Engineering CO LTD

(7) ldquoPolicy Working Paper 2438 (Measurements of Poverty in Indonesia 1996 1999 and Beyond)rdquo 2000 The World Bank

- 3 - Draft Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- i - Draft Final Report

TABLE OF CONTENTS 1 General 1 - 1 11 Background 1 - 1 12 Purpose of the Study 1 - 2 13 Study Area and Scope of Work 1 - 2

131 Study Area 1 - 2 132 Scope of Work 1 - 4

2 Recognition of Current Situation in Java-Bali Region 2 - 1 21 Confirmation of Power Development Plan 2 - 1

211 Power Development Plan 2 - 1 212 Transmission System Expansion Plan 2 - 6

22 Confirmation of Fuel Supply Plan 2 - 9 221 Fuel Oil Prices 2 - 9 222 Natural Gas 2 - 9 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region 2 - 11

23 Confirmation of Financial Status of PLN and Power Generation Companies 2 - 12 231 PLN 2 - 12 232 PJB 2 - 14 233 Indonesia Power (IP) 2 - 15

24 Review of Collected Data and Information Relating to Technology Transfer 2 - 16 241 Thermal Power Station 2 - 16 242 Hydropower Station 2 - 19

25 Current Status of JBIC Export Credit 2 - 22 251 Agreement on Export Credit Line 2 - 22 252 Basic Condition of Export Credit Line 2 - 22 253 Current Status of Export Credit Line Procedure in Indonesia 2 - 23 254 Export Credit Line Currently Planned by PLN 2 - 24

26 Confirmation of Environmental Regulation Relating for Power Sector 2 - 26 261 Background of Environmental and Social Consideration in Indonesia 2 - 26 262 Institution of Environmental and Social Consideration and Legal Framework 2 - 27 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities 2 - 29 264 Environmental Quality 2 - 31 265 Stakeholder 2 - 32

3 Review of Existing Electric Power Generation Facilities 3 - 1 31 Confirmation of Current Status and Issues Relating to Facilities 3 - 1

311 Thermal Power Stations 3 - 1 312 Hydropower Stations 3 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - ii -

32 Confirmation of Current Status and Issues Relating to Operation and Maintenance 3 - 57 321 Thermal Power Stations 3 - 57 322 Hydropower Stations 3 - 95

33 Confirmation of Current Status and Recommendation on Improvement Relating to the Existing Power Facilities 3 -137 331 System Stability 3 -137 332 Existing Transmission Substation Facilities and Availability 3 -138 333 Number of Service Interruptions 3 -139 334 Frequency 3 -141 335 Voltage 3 -141

4 Rehabilitation Modification and Repowering Plans based on Existing Facilities 4 - 1 41 Thermal Power Stations 4 - 1

411 Technical Study 4 - 1 412 Economic Financial Analysis 4 - 17 413 Environmental and Social Consideration 4 - 39

42 Hydropower Stations 4 - 59 421 Technical Study 4 - 59 422 Economic Financial Analysis 4 - 60 423 Environmental and Social Consideration 4 - 60

5 Improvement Measures relating to Operation Maintenance and Inspection 5 - 1 51 Toward Improvement of Operation Performance 5 - 1

511 PLN and North American Reliability Council (NERC) 5 - 1 512 Maintenance Optimization Program (MOP) 5 - 2

52 Thermal Power Station 5 - 5 521 Improvements to prevent Routine Accidents and Troubles 5 - 6 522 Improvement Plans of Scheduled Inspection Work from Operational Aspect 5 - 18

53 Hydropower Stations 5 - 25 54 Regulations related to Power Utilities Companies in Japan 5 - 28

541 Regulations Related to Electricity Utilities Industry Law 5 - 28 542 Other Related Regulations and Qualified Personnel in Japan 5 - 35

55 Guideline and Management Plan for Thermal Power Station 5 - 37 551 System and Regulations on the Operation MaintenanceInspection Management 5 - 37 552 Management Plans and Guideline for the Operation Maintenance Inspection Management of the Existing Thermal Power Equipment 5 - 41 553 Human Resources Development 5 - 45 554 Safety Management 5 - 47

56 Guideline and Management Plan for Hydropower Station 5 - 49 561 Items for Operation Job 5 - 49 562 Items for Maintenance Job 5 - 50

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- iii - Draft Final Report

563 Items for Training 5 - 52 564 Items for Safety Work 5 - 56 565 Sample of Regulation Rule Standard Manual for Operation Maintenance and Safety 5 - 57

6 Technology Transfer 6 - 1 61 Thermal Power Station 6 - 1

611 Background 6 - 1 612 Technology Transfer 6 - 4 613 List of Participants 6 - 16 614 List of Distributed Material in the Technology Transfer 6 - 18

62 Hydropower Station 6 - 20 621 Background 6 - 20 622 Technology Transfer 6 - 22 623 List of Participants 6 - 26 624 List of Distributed Material in the Technology Transfer 6 - 26

7 Conclusion and Recommendation 7 - 1 71 Conclusion 7 - 1

711 Thermal Power Stations 7 - 1 712 Hydropower Stations 7 - 3 713 Power Facilities (Transmission Line and Substation) 7 - 3 714 Technology Transfer for Remaining Life Assessment (RLA) 7 - 3

72 Recommendation 7 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - iv -

LIST OF TABLES Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Table 21-1 Power Development Plan in Java-Bali Region Table 21-2 Power Development Plan for Whole Indonesia Table 21-3 Power Development Plan by Fuel Type Table 21-4 Announcement of Coal Fired Power Plant Projects Table 22-1 Gas Demand and Supply Balance from 2006 to 2015 Table 23-1 Profit and Loss Statement of PLN Table 23-2 Profit and Loss Statement of PJB Table 23-3 Profit and Loss Statement of IP Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Table 25-1 Loan Condition of JBIC Export Credit Table 26-1 Ambient Air Quality Standards Table 26-2 Emission Gas Standards Table 26-3 Ambient Water Quality Standards Table 26-4 Ambient Sea Water Quality Standards Table 26-5 Wastewater Standards Table 26-6 Noise Level Standards Table 26-7 Vibration Level Standards Table 26-8 Odor Standards Table 31-1 Summary of Performance and Capacity Data of Objective 12 Thermal Power

Stations Table 31-2 Capacity Data Summaries of 12 Thermal Power Stations Table 31-3 Capacity Derating Summaries on PLTGUsPLTGs Table 31-4 Main Features for Muara Tawar (PJB) Power Station Table 31-5 Main Features for Gresik Power Station Table 31-6 Main Features for Paiton Power Station Table 31-7 Main Features for Perak Power Station Table 31-8 Main Features for Tanjung Priok Power Station Table 31-9 Main Features for Muara Karang Power Station Table 31-10 Main Feature for Tambak Lorok Power Station Table 31-11 Main Features for Grati Power Station Table 31-12 Main Features for Suralaya Power Station Table 31-13 Main Features for Pesanggaran Power Station Table 31-14 Main Features for Gilimanuk Power Station Table 31-15 Main Features for Pemaron Power Station Table 31-16 (1) Original Proposals of Rehabilitation Modification and Repowering Plans for IP Table 31-16 (2) Original Proposals of Rehabilitation Modification and Repowering Plans for PJB

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- v - Draft Final Report

Table 31-17 Additional Proposals of Oil Reduction Plans Table 31-18 Final Proposals for Further Study Table 31-19 Main Features of Objective Hydropower Stations Table 31-20 Annuals Scheduled Outage and Forced Outage Hour (Saguling) Table 31-21 Analysis Scheduled Outage and Forced Outage Hour (Cirata) Table 31-22 Analysis Scheduled Outage and Forced Outage Hour (Soedirman) Table 31-23 Analysis Scheduled Outage and Forced Outage Hour (Sutami) Table 32-1 Forced Outage (Times) for Thermal Power Stations Table 32-2 Forced Outage (Hours) for Thermal Power Stations Table 32-3 Number of Forced Outages (Times) for PLTU Table 32-4 Number of Forced Outages (Times) for PLTG Table 32-5 Number of Forced Outages (Times) for PLTGU Table 32-6 Records of Scheduled MaintenanceInspection for 2003 2004 and 2005 by Unit

Type Table 32-7 PlansActual of Scheduled MaintenanceInspection for 2006 by Unit Type

(As of July 2006) Table 32-8 System for Maintenance Division at Power Station Table 32-9 Sharing of Role between Maintenance Department of the Power Station and

Maintenance Business Unit (UBHARUHAR) Table 32-10 Support System in UBHAR for Scheduled MaintenanceInspection Work Table 32-11(1)~(4) Summary of Forced Outage for 2003 2004 and 2005 at Each Unit Type Table 32-12(1)~(11) Summary of Forced Outage for 2003 2004 and 2005 at Each Power Station Table 32-13 Cause of Scheduled OutageForced Outage amp Outage Hour (Saguling) Table 32-14 Cause of Scheduled OutageForced Outage amp Outage Hour (Cirata) Table 32-15 Cause of Scheduled OutageForced Outage amp Outage Hour (Soedirman) Table 32-16 Cause of Scheduled OutageForced Outage amp Outage Hour (Sutami) Table 41-1 Final Plans for Further Study at 2nd Steering Committee Table 41-2 UBP Semarang Thermal Power Station and Power Units Table 41-3 UBP PerakGrati Thermal Power Station and Power Units Table 41-4 UBP Bali Power Units List Table 41-5 Outline of Proposed Plans Table 41-6 Results of Economic Analysis Table 41-7 Result of Financial Analysis Table 41-8 Measures toward Implementation Table 41-9 Economic Comparison amp Financial Analysis for Proposed Repowering Plans Table 41-10 Economic Analysis for Each Power Station Basis Table 41-11 Economic Analysis for Oil Reduction Plan Table 41-12 Financial Analysis for Each Power Station Basis Table 41-13 Financial Analysis for Oil Reduction Plan Table 41-14 (1) Scoping Results of the Repowering Plan in Tambak Lorok Thermal Power Station Table 41-14 (2) Scoping Results of the Repowering Plan in Grati Thermal Power Station

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - vi -

Table 41-14 (3) Scoping Results of the Repowering Plan in Gilimanuk Thermal Power Station Table 41-15 (1) Scoping Results of the Improvement Plan in UBP Semarang Table 41-15 (2) Scoping Results of the Improvement Plan in UBP PerakGrati Table 41-15 (3) Scoping Results of the Improvement Plan in UBP Bali Table 41-16 (1) Draft Outline of KA-ANDAL for Repowering Plan (Tambak Lorok Power

Station) Table 41-16 (2) Draft Outline of KA-ANDAL for Repowering Plan (Gilimanuk Power Station) Table 42-1 Proposed Rehabilitation Modification and Repowering Plans Table 51-1 Examples of Common Indicators Table 51-2 Key Performance Indicators for Reliability Management Table 52-1 Implementation Procedure of Scheduled Inspection Table 52-2 Sharing of Roles Table 52-3 Scheduled Inspection Shortening Method (Questionnaire Result Summary

Sheet) Table 54-1 Regulated Electricity related Accident Report Table 55-1 Items for Operation Management Table 55-2 Routine Inspection Items Table 61-1 Achievement of RLA and RehabilitationModification Table 61-2 Result of Questionnaire for Technology Transfer Table 61-3 Level of Understanding for Technology Transfer (713 714) Table 61-4 Result of Questionnaire for Technology Transfer Table 61-5 Level of Understanding for Technology Transfer (724) Table 7-1 Recommendations Table 7-2 Summary of Objective 16 Power Stations relating to Operation and Maintenance

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- vii - Draft Final Report

LIST OF FIGURES

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line Figure 21-1 Southerly 500 kV Transmission Line Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO Figure 26-1 (1) Organization Chart for Ministry Energy and Mineral Resources Figure 26-1 (2) Organization Chart for MEMR (Environmental Section) Figure 26-2 Involvement Procedure for Public Process of AMDAL Figure 26-3 Procedure for Implementation of Environmental Impact Assessment Figure 31-1 Distribution of Gas from Producer to UP Gresik Figure 32-1 Daily Load Curve in Java-Bali Regions (22 August 2006) Figure 32-2 Annual Operation Performance Relating Hours () for Objective Power Stations Figure 32-3 Inflow and Spilled Water at Saguling Reservoir Figure 32-4 Reservoir Operation in Saguling and Cirata Figure 32-4 Number of Service Interruption of Transformer per Unit Figure 33-5 Power Flow Drawing in 500 kV Java-Bali (2007) Figure 33-1 500kV Power Flow in the Maximum Load of Java 2004 (September 28th 1830) Figure 33-2 Service Interruptions by Source of Faults (times) Figure 33-3 Number of Service Interruptions of Transmission Line per 100 km Circuit Figure 41-1 Gilimanuk Power Station Layout Figure 41-2 UBP Semarang Three Power Stations Figure 41-3 Grati Power Station Layout Figure 41-4 UBP Bali Three Power Stations and Submarine Cables Figure 41-5(1) Topography of Power Plant in Surrounding (Tambak Lorok Power Station) Figure 41-5(2) Topography of power Plant in Surrounding (Grati Power Station) Figure 41-5(3) Topography of Power Plant in Surrounding (Gilimanuk Power Station) Figure 51-1 Comparison with NERC for EAF (Gresik power station) Figure 51-2 Flowchart of Maintenance Optimization Program at PJB Figure 51-3 Result of the Assessment (quoted from P17-Plant Assessment Gresik) Figure 51-4 Asset Management Performance Meter for Gresik Figure 52-1 Measurement Points Figure 52-2 Measurement Flow for Key Inspecting System Figure 52-3 Flow of Inspection Procedure Figure 54-1 Relationship between Power Utility Companies and METI in Japan Figure 61-1 Operating Time (Years) for PLTU

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

1 GENERAL 11 Background

Power demand in the Republic of Indonesia has steadily increased since the economic crisis in 1997 However the power supply system to the consumers still does not seem to work efficiently and seems to become the bottleneck toward the economic recovery in Indonesia For the above reason JICA carried out the study on the optimum power sources development in Java-Bali system (Power Sector Study for the Optimum Power Sources Development) from 2001 to 2002 In the Study JICA proposed recommendations on short-term countermeasures and mid-term plans from the viewpoint of stable power supply especially in Java-Bali system because the occurrence of shortage of reserve margin for power supply in Java-Bali system in 2004 had been anticipated And the immediate implementation of those recommendations was required Based on the above needs JICA conducted ldquoBasic Study for Project Formation Related to Mining and Manufacturing (The Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in the Republic Indonesia)rdquo in June 2003 In the Preliminary Study JICA mission studied on the current situation and identified the issues relating to the improvement measures for existing power generation facilities recommended in the Study in 2003 and formulated a specified project resulting from the confirmation of needs and consultation with relevant organizations in Indonesia The specific content was stipulated in the Minutes of Meeting agreed on July 3 2003 between JICA Ministry of Energy and Mineral Resources (MEMR) and PT PLN (Persero) Based on the Project Formation Study the Government of Republic of Indonesia officially requested the Government of Japan to implement the Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in July 23 2004 and the Government of Japan accepted the request and decided to conduct the Study in 2005 The tight power supply balance in Java-Bali region envisaged at the project formation study was fortunately avoided due to the effect by tariff hike and depressing power demand such as restricted connection to new customers which had been imposed up to July 2003 In year 2004 the actual demand under ran the projected demand

In year 2005 power demand has been increasing again and exceeded the past maximum peak load On the other hand any power stations except an expansion of thermal station (Muara Tawar Gas Turbine 858 MW) have not been reinforced up to now since the economic crisis For the above reason the phenomena of shortage for power supply and appreciate reserve margin were observed since April 2005 The envisaged tight power supply balance imposing

1 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

forced-demand control for large consumers has become the realistic issue In year 2006 new power stations are scheduled to start the commercial operation On the other hand due to the increase of power demand and decrease of exploitation of gas and oil in Indonesia it is worried about stable supply of fuels for power stations Further more due to the difficulty of land acquisition transmission expansion plan cannot keep the implementation schedule which means that tight supply balance might not be resolved even though new power stations are put into operation For the above reasons the study on the improvement measures for electric power generation facilities is expected

12 Purpose of the Study

The purpose of the Study is to develop the improvement measures for existing power stations to meet the power demand in short and middle terms in Java-Bali region based on the above background and to conduct the technology transfer relating the effective and appropriate operation and maintenance for the existing power stations

13 Study Area and Scope of Work 131 Study Area

The objective power stations are the following sixteen (16) power stations in Java-Bali regions and their locations are figure below

Final Report 1 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Owner Power Station Type Fuel Total Output (MW)

Suralaya Conventional Coal 400 MWtimes4 600 MW times 3 3400Conventional MFO 50 MWtimes2

CC GasHSD (130 MW times 3 + 200 MW) times 2 BL Tanjung Priok

Gas Turbine GasHSD 26 MW times 2 1430Conventional MFO 50 MW times 2 + 200 MW Tambak Lorok

CC GasHSD (10965 MW times 3 + 188 MW) times 2BL 1334CC GasHSD 10075 MW times 3 + 15958 MW Grati

Gas Turbine HSD 10075 MW times 3 764Perak Conventional MFO 50 MW times 2 100

Gas Turbine HSD 2135 + 2010 + 4200 times 2 Pesanggaran Diesel HSD 9 units Total 6568 MW 201

Gilimanuk Gas Turbine HSD 1338 MW 134Pemaron CC HSD 488 MW times 2 + 484 MW 150Saguling Hydro - 17518 MW times 4 70072

IP

Soedirman Hydro - 6030 times 3 1809Conventional GasMFO 100 MWtimes3 + 200 MW times 2 Muara Karang

CC GasHSD 10786 MWtimes3 + 18510 MW 1209Conventional GasMFO 100 MW times 2 + 200 MW times 2 Gresik

CC GasHSD (11245 MW times 3 + 18891 MW) times 3BL 2239Paiton Conventional Coal 400 MW times 2 800Muara Tawar CC GasHSD 140 MWtimes5 + 220 MW 920Cirata Hydro - 126 MW times 8 1008

PJB

Sutami Hydro - 35 MW times 3 105

Note HSD means High Speed Diesel Oil MFO means Marine Fuel Oil CC means Combined Cycle

(as of Nov2005)

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line

1 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

132 Scope of Work

The Study is to develop the improvement measures relating to the existing power facilities and operation and maintenance based on the analyses of current situation of the objective power stations in order to reduce the gap between the installed capacity (total rated capacity approximately 19500 MW) and available power supply capacity (approximately 14500 MW) which is regarded as the cause of tight of power balance and accounted to about 5000 MW (26 of total installed capacity) The Study is consisted of the following scope of work

(1) Preliminary Survey Stage

The following survey will be carried out in order to confirm the current situation of each power facilities in Java-Bali region

1) Collection of data and information of the following items through the investigation of the relevant organization in Indonesia and electric power facilities in Java-Bali Region a) Performance of power generation facilities b) Current situation of operation maintenance and inspection c) Organization and regulation for operation maintenance and inspection d) Needs for the technology transfer on operation maintenance and inspection e) 500 kV transmission line of Java-Bali system f) Plan of fuel supply

2) Review of the related reports and other relevant information

(2) Analysis and Examination Stage

Based on the result of the Preliminary Survey Stage current situation and management system would be analyzed for each power generation facilities and necessary countermeasures would be examined The following items will be considered in each power generation facilities

1) Improvement measures of power generation facilities including rehabilitation modification and re-powering

2) Improvement measures of management for operation maintenance and inspection

3) Economic and financial analysis of the above mentioned improvement

4) Grading the power facilities in need of improvement

(3) Technology Transfer Stage

Based on the impact and the needs for the technology transfer on operation maintenance

Final Report 1 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

and inspection with are confirmed in the Preliminary Survey Stage technology transfer on operation maintenance and inspection will be conducted at the time of maintenance and inspection

(4) Recommendation Stage

Considering the results of the above mentioned stages the following plan and recommendation will be submitted

1) Rehabilitation modification or re-powering plan of the power generation facilities

2) Management plan and general guidelines of operation maintenance and inspection

3) Recommendation to the organization and regulation for enhancing the capability of operation maintenance and inspection

4) Development plan of human resources for operation maintenance and inspection

1 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

2 RECOGNITION OF CURRENT SITUATION IN JAVA-BALI REGION 21 Confirmation of Power Development Plan 211 Power Development Plan

(1) Power Development Plan based on April 25 2005

The following tables show the power development plan from the year 2005 to 2015 for Java-Bali region and whole Indonesia as of April 2005

Table 21-1 Power Development Plan in Java-Bali Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Required Energy Residents GWh 28612 30074 31640 33315 35107 37016 38984 41015 43111 45277 47515 Public GWh 3851 4012 4179 4352 4534 4719 4868 5022 5181 5345 5514 Commercial GWh 13013 14526 16202 18060 20121 22478 25102 28024 31279 34906 38948 Industry GWh 35674 38484 41759 45439 49508 54205 59176 64515 70290 76557 83372Required Total GWh 81150 87095 93779 101166 109269 118418 128131 138576 149861 162085 175350Growth Rate - 73 77 79 80 84 82 82 81 82 8 System Loss (TampD) 114 110 104 103 103 102 101 101 100 100 100 Station Use 4 4 4 4 4 4 4 4 4 3 3Total Loss 15 15 14 14 14 14 14 14 14 13 13Load Factor 72 72 72 73 73 73 74 74 74 74 7Generation GWh 93665 100196 107274 115680 124861 135264 146261 158125 170889 183208 198201Peak Load MW 14851 15886 17008 18090 19525 21152 22563 24393 26362 28262 30575 Capacity at the beginning of the Year MW 18658 18658 21573 22298 23823 25773 28153 30296 32002 34363 36684Committed Project PLN Portion 0 730 60 945 720 0 0 0 0 0 0Muara Karang Repowering PLTGU 720Muara Tawar Extension PLTGU 225Priok Extension PLTGU 720Pemaron Extension PLTGU 50Cilegon PLTGU 730Cibuni PLTP 10 Private Portion 0 2040 290 580 0 0 0 0 0 0 0Tanjung Jati B 12 PLTU 1320Cilacap 1-2 PLTU 600Kamojang 4 PLTP 60Wayang Windu PLTP 110Dieng PLTP 60 60Darajat 3 PLTP 110Patuha PLTP 60 120Bedugul PLTP 10Anyer PLTGU 400New Project Plan Addition of New Generator 0 145 375 0 1230 2380 2330 1890 2360 2320 2720Muara Tawar Add On 2 PLTGU 145 225Kamojang 5 PLTP 60PLTU PLTU 500 660 1200 660 660 1320 1320PLTG PLTG 200 400 200 400PLTGU PLTGU 150 730 1460 730 730 1000 1000 1000Pump Storage Upper Cisokan PLTA 500 500 Total Additional Capacity MW 0 2915 725 1525 1950 2380 2330 1890 2360 2320 2720Total System Capacity MW 18658 21573 22298 23823 25773 28153 30483 32186 34362 36683 39404Reserve Margin 26 36 31 32 32 33 35 32 30 30 29Required Capacity MW 20048 21446 22961 24421 26359 28556 29332 31711 34271 36741 39748Shortage or Surplus MW 1390 -127 663 598 586 403 -1151 -475 -91 58 344

2

4

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG

RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

2 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 5: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Abbreviation Full Description in English (Indonesian)

LFC Load Frequency Control

LHV Low Heat Value

LITBANG PLN Research and Development Center for Electricity (PT PLN Penelitian dan Pengembangan Ketenagalistrikan)

LNG Liquid Natural Gas

LP Low Pressure

MELCO Mitsubishi Electric Corporation

MEMR Ministry of Energy and Mineral Resources

METI Ministry of Economy Trade and Industry

MFO Marine Fuel Oil

MHI Mitsubishi Heavy Industries

MO Major Overhaul

MOH Maintenance Outage Hours

NG Natural Gas

P3B Jawa Bali Transmission and Load Dispatching Center (Penyaluran Dan Pusat Pengatur Beban Jawa Bali)

PJB PLN Java Bali Power Company (PT Pembangkitan Jawa-Bali)

PLN Indonesia Electricity Corporation (Perusahaan Umum Listrik Negara PERSERO)

PLTA Hydro Power Plant

PLTD Diesel Power Plant

PLTG Gas Turbine Power Plant

PLTGU Combined Cycle Power Plant

PLTP Geothermal Power Plant

PLTU Steam Power Plant

POH Planned Outage Hours

RH Re-heater

RKL UKL Environmental Management Plan

RLA Remaining Life Assessment

RPL UPL Environmental Monitoring Plan

RSH Reserve Shutdown Hours

Rp Indonesian monetary unit (1 US$ = 9000 Rp in 2005)

SCADA Sequential Control and data Acquisition System

SH Super Heater

SH Service Hours

TIT Turbine Inlet Temperature

UBP Generation Business Unit (Unit Busnis Pembangkitan)

WB World Bank

WSS Weekly Start and Stop

WW Water Wall

Draft Final Report - 2 -

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Unit Table Abbreviation Unit

bbl Barrel (1 bbl = 159 litter)

GWh Gigawatt-hour

kW Kilowatt

kWh Kilowatt-hour ( 1 kWh = 860 kcal) (1 kcal = 3968 BTU)

MMBTU 106 British Thermal Unit (MM = 106)

MMSCF 106 Standard Cubic Feet (MM = 106)

mmscfd Million Standard Cubic Feet per Day

MSCF 103 Standard Cubic Feet (M = 103)

MVA Mega-volt-ampere

MW Megawatt

MWh Megawatt-hour

VA Volt-ampere

References

(1) ldquoThe Project Formation Study for the Improvement of Utilization of Electric Power Facilities in Java-Bali Region in the Republic of Indonesiardquo September 2003 JICA

(2) ldquoThe Preliminary Study for the Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Regionrdquo June 29 2005 JICA

(3) ldquoBasic Strategy of Japanrsquos ODA Loan (The Medium-Term Strategy for Overseas Economic Cooperation)rdquo April 2005 Japan Bank for International Cooperation

(4) ldquoEx-post Evaluation Report on ODA Loan Project 1999 (Gas Firing Modification Works of Gresik Steam Power Plant Units III and IV)rdquo Japan Bank for International Cooperation

(5) ldquoEx-post Evaluation Report on ODA Loan Project 2002 (Priok Steam Power Plant Unit 3 amp 4 Rehabilitation Project)rdquo Japan Bank for International Cooperation

(6) ldquoStudy Report for CDMJI 2004 (Feasibility Study on the Effective Utilization of Biogas Recovery at Waste Disposal in Indonesia)rdquo 2004 KAJIMA Corporation and YACHIYO Engineering CO LTD

(7) ldquoPolicy Working Paper 2438 (Measurements of Poverty in Indonesia 1996 1999 and Beyond)rdquo 2000 The World Bank

- 3 - Draft Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- i - Draft Final Report

TABLE OF CONTENTS 1 General 1 - 1 11 Background 1 - 1 12 Purpose of the Study 1 - 2 13 Study Area and Scope of Work 1 - 2

131 Study Area 1 - 2 132 Scope of Work 1 - 4

2 Recognition of Current Situation in Java-Bali Region 2 - 1 21 Confirmation of Power Development Plan 2 - 1

211 Power Development Plan 2 - 1 212 Transmission System Expansion Plan 2 - 6

22 Confirmation of Fuel Supply Plan 2 - 9 221 Fuel Oil Prices 2 - 9 222 Natural Gas 2 - 9 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region 2 - 11

23 Confirmation of Financial Status of PLN and Power Generation Companies 2 - 12 231 PLN 2 - 12 232 PJB 2 - 14 233 Indonesia Power (IP) 2 - 15

24 Review of Collected Data and Information Relating to Technology Transfer 2 - 16 241 Thermal Power Station 2 - 16 242 Hydropower Station 2 - 19

25 Current Status of JBIC Export Credit 2 - 22 251 Agreement on Export Credit Line 2 - 22 252 Basic Condition of Export Credit Line 2 - 22 253 Current Status of Export Credit Line Procedure in Indonesia 2 - 23 254 Export Credit Line Currently Planned by PLN 2 - 24

26 Confirmation of Environmental Regulation Relating for Power Sector 2 - 26 261 Background of Environmental and Social Consideration in Indonesia 2 - 26 262 Institution of Environmental and Social Consideration and Legal Framework 2 - 27 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities 2 - 29 264 Environmental Quality 2 - 31 265 Stakeholder 2 - 32

3 Review of Existing Electric Power Generation Facilities 3 - 1 31 Confirmation of Current Status and Issues Relating to Facilities 3 - 1

311 Thermal Power Stations 3 - 1 312 Hydropower Stations 3 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - ii -

32 Confirmation of Current Status and Issues Relating to Operation and Maintenance 3 - 57 321 Thermal Power Stations 3 - 57 322 Hydropower Stations 3 - 95

33 Confirmation of Current Status and Recommendation on Improvement Relating to the Existing Power Facilities 3 -137 331 System Stability 3 -137 332 Existing Transmission Substation Facilities and Availability 3 -138 333 Number of Service Interruptions 3 -139 334 Frequency 3 -141 335 Voltage 3 -141

4 Rehabilitation Modification and Repowering Plans based on Existing Facilities 4 - 1 41 Thermal Power Stations 4 - 1

411 Technical Study 4 - 1 412 Economic Financial Analysis 4 - 17 413 Environmental and Social Consideration 4 - 39

42 Hydropower Stations 4 - 59 421 Technical Study 4 - 59 422 Economic Financial Analysis 4 - 60 423 Environmental and Social Consideration 4 - 60

5 Improvement Measures relating to Operation Maintenance and Inspection 5 - 1 51 Toward Improvement of Operation Performance 5 - 1

511 PLN and North American Reliability Council (NERC) 5 - 1 512 Maintenance Optimization Program (MOP) 5 - 2

52 Thermal Power Station 5 - 5 521 Improvements to prevent Routine Accidents and Troubles 5 - 6 522 Improvement Plans of Scheduled Inspection Work from Operational Aspect 5 - 18

53 Hydropower Stations 5 - 25 54 Regulations related to Power Utilities Companies in Japan 5 - 28

541 Regulations Related to Electricity Utilities Industry Law 5 - 28 542 Other Related Regulations and Qualified Personnel in Japan 5 - 35

55 Guideline and Management Plan for Thermal Power Station 5 - 37 551 System and Regulations on the Operation MaintenanceInspection Management 5 - 37 552 Management Plans and Guideline for the Operation Maintenance Inspection Management of the Existing Thermal Power Equipment 5 - 41 553 Human Resources Development 5 - 45 554 Safety Management 5 - 47

56 Guideline and Management Plan for Hydropower Station 5 - 49 561 Items for Operation Job 5 - 49 562 Items for Maintenance Job 5 - 50

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- iii - Draft Final Report

563 Items for Training 5 - 52 564 Items for Safety Work 5 - 56 565 Sample of Regulation Rule Standard Manual for Operation Maintenance and Safety 5 - 57

6 Technology Transfer 6 - 1 61 Thermal Power Station 6 - 1

611 Background 6 - 1 612 Technology Transfer 6 - 4 613 List of Participants 6 - 16 614 List of Distributed Material in the Technology Transfer 6 - 18

62 Hydropower Station 6 - 20 621 Background 6 - 20 622 Technology Transfer 6 - 22 623 List of Participants 6 - 26 624 List of Distributed Material in the Technology Transfer 6 - 26

7 Conclusion and Recommendation 7 - 1 71 Conclusion 7 - 1

711 Thermal Power Stations 7 - 1 712 Hydropower Stations 7 - 3 713 Power Facilities (Transmission Line and Substation) 7 - 3 714 Technology Transfer for Remaining Life Assessment (RLA) 7 - 3

72 Recommendation 7 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - iv -

LIST OF TABLES Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Table 21-1 Power Development Plan in Java-Bali Region Table 21-2 Power Development Plan for Whole Indonesia Table 21-3 Power Development Plan by Fuel Type Table 21-4 Announcement of Coal Fired Power Plant Projects Table 22-1 Gas Demand and Supply Balance from 2006 to 2015 Table 23-1 Profit and Loss Statement of PLN Table 23-2 Profit and Loss Statement of PJB Table 23-3 Profit and Loss Statement of IP Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Table 25-1 Loan Condition of JBIC Export Credit Table 26-1 Ambient Air Quality Standards Table 26-2 Emission Gas Standards Table 26-3 Ambient Water Quality Standards Table 26-4 Ambient Sea Water Quality Standards Table 26-5 Wastewater Standards Table 26-6 Noise Level Standards Table 26-7 Vibration Level Standards Table 26-8 Odor Standards Table 31-1 Summary of Performance and Capacity Data of Objective 12 Thermal Power

Stations Table 31-2 Capacity Data Summaries of 12 Thermal Power Stations Table 31-3 Capacity Derating Summaries on PLTGUsPLTGs Table 31-4 Main Features for Muara Tawar (PJB) Power Station Table 31-5 Main Features for Gresik Power Station Table 31-6 Main Features for Paiton Power Station Table 31-7 Main Features for Perak Power Station Table 31-8 Main Features for Tanjung Priok Power Station Table 31-9 Main Features for Muara Karang Power Station Table 31-10 Main Feature for Tambak Lorok Power Station Table 31-11 Main Features for Grati Power Station Table 31-12 Main Features for Suralaya Power Station Table 31-13 Main Features for Pesanggaran Power Station Table 31-14 Main Features for Gilimanuk Power Station Table 31-15 Main Features for Pemaron Power Station Table 31-16 (1) Original Proposals of Rehabilitation Modification and Repowering Plans for IP Table 31-16 (2) Original Proposals of Rehabilitation Modification and Repowering Plans for PJB

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- v - Draft Final Report

Table 31-17 Additional Proposals of Oil Reduction Plans Table 31-18 Final Proposals for Further Study Table 31-19 Main Features of Objective Hydropower Stations Table 31-20 Annuals Scheduled Outage and Forced Outage Hour (Saguling) Table 31-21 Analysis Scheduled Outage and Forced Outage Hour (Cirata) Table 31-22 Analysis Scheduled Outage and Forced Outage Hour (Soedirman) Table 31-23 Analysis Scheduled Outage and Forced Outage Hour (Sutami) Table 32-1 Forced Outage (Times) for Thermal Power Stations Table 32-2 Forced Outage (Hours) for Thermal Power Stations Table 32-3 Number of Forced Outages (Times) for PLTU Table 32-4 Number of Forced Outages (Times) for PLTG Table 32-5 Number of Forced Outages (Times) for PLTGU Table 32-6 Records of Scheduled MaintenanceInspection for 2003 2004 and 2005 by Unit

Type Table 32-7 PlansActual of Scheduled MaintenanceInspection for 2006 by Unit Type

(As of July 2006) Table 32-8 System for Maintenance Division at Power Station Table 32-9 Sharing of Role between Maintenance Department of the Power Station and

Maintenance Business Unit (UBHARUHAR) Table 32-10 Support System in UBHAR for Scheduled MaintenanceInspection Work Table 32-11(1)~(4) Summary of Forced Outage for 2003 2004 and 2005 at Each Unit Type Table 32-12(1)~(11) Summary of Forced Outage for 2003 2004 and 2005 at Each Power Station Table 32-13 Cause of Scheduled OutageForced Outage amp Outage Hour (Saguling) Table 32-14 Cause of Scheduled OutageForced Outage amp Outage Hour (Cirata) Table 32-15 Cause of Scheduled OutageForced Outage amp Outage Hour (Soedirman) Table 32-16 Cause of Scheduled OutageForced Outage amp Outage Hour (Sutami) Table 41-1 Final Plans for Further Study at 2nd Steering Committee Table 41-2 UBP Semarang Thermal Power Station and Power Units Table 41-3 UBP PerakGrati Thermal Power Station and Power Units Table 41-4 UBP Bali Power Units List Table 41-5 Outline of Proposed Plans Table 41-6 Results of Economic Analysis Table 41-7 Result of Financial Analysis Table 41-8 Measures toward Implementation Table 41-9 Economic Comparison amp Financial Analysis for Proposed Repowering Plans Table 41-10 Economic Analysis for Each Power Station Basis Table 41-11 Economic Analysis for Oil Reduction Plan Table 41-12 Financial Analysis for Each Power Station Basis Table 41-13 Financial Analysis for Oil Reduction Plan Table 41-14 (1) Scoping Results of the Repowering Plan in Tambak Lorok Thermal Power Station Table 41-14 (2) Scoping Results of the Repowering Plan in Grati Thermal Power Station

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - vi -

Table 41-14 (3) Scoping Results of the Repowering Plan in Gilimanuk Thermal Power Station Table 41-15 (1) Scoping Results of the Improvement Plan in UBP Semarang Table 41-15 (2) Scoping Results of the Improvement Plan in UBP PerakGrati Table 41-15 (3) Scoping Results of the Improvement Plan in UBP Bali Table 41-16 (1) Draft Outline of KA-ANDAL for Repowering Plan (Tambak Lorok Power

Station) Table 41-16 (2) Draft Outline of KA-ANDAL for Repowering Plan (Gilimanuk Power Station) Table 42-1 Proposed Rehabilitation Modification and Repowering Plans Table 51-1 Examples of Common Indicators Table 51-2 Key Performance Indicators for Reliability Management Table 52-1 Implementation Procedure of Scheduled Inspection Table 52-2 Sharing of Roles Table 52-3 Scheduled Inspection Shortening Method (Questionnaire Result Summary

Sheet) Table 54-1 Regulated Electricity related Accident Report Table 55-1 Items for Operation Management Table 55-2 Routine Inspection Items Table 61-1 Achievement of RLA and RehabilitationModification Table 61-2 Result of Questionnaire for Technology Transfer Table 61-3 Level of Understanding for Technology Transfer (713 714) Table 61-4 Result of Questionnaire for Technology Transfer Table 61-5 Level of Understanding for Technology Transfer (724) Table 7-1 Recommendations Table 7-2 Summary of Objective 16 Power Stations relating to Operation and Maintenance

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- vii - Draft Final Report

LIST OF FIGURES

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line Figure 21-1 Southerly 500 kV Transmission Line Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO Figure 26-1 (1) Organization Chart for Ministry Energy and Mineral Resources Figure 26-1 (2) Organization Chart for MEMR (Environmental Section) Figure 26-2 Involvement Procedure for Public Process of AMDAL Figure 26-3 Procedure for Implementation of Environmental Impact Assessment Figure 31-1 Distribution of Gas from Producer to UP Gresik Figure 32-1 Daily Load Curve in Java-Bali Regions (22 August 2006) Figure 32-2 Annual Operation Performance Relating Hours () for Objective Power Stations Figure 32-3 Inflow and Spilled Water at Saguling Reservoir Figure 32-4 Reservoir Operation in Saguling and Cirata Figure 32-4 Number of Service Interruption of Transformer per Unit Figure 33-5 Power Flow Drawing in 500 kV Java-Bali (2007) Figure 33-1 500kV Power Flow in the Maximum Load of Java 2004 (September 28th 1830) Figure 33-2 Service Interruptions by Source of Faults (times) Figure 33-3 Number of Service Interruptions of Transmission Line per 100 km Circuit Figure 41-1 Gilimanuk Power Station Layout Figure 41-2 UBP Semarang Three Power Stations Figure 41-3 Grati Power Station Layout Figure 41-4 UBP Bali Three Power Stations and Submarine Cables Figure 41-5(1) Topography of Power Plant in Surrounding (Tambak Lorok Power Station) Figure 41-5(2) Topography of power Plant in Surrounding (Grati Power Station) Figure 41-5(3) Topography of Power Plant in Surrounding (Gilimanuk Power Station) Figure 51-1 Comparison with NERC for EAF (Gresik power station) Figure 51-2 Flowchart of Maintenance Optimization Program at PJB Figure 51-3 Result of the Assessment (quoted from P17-Plant Assessment Gresik) Figure 51-4 Asset Management Performance Meter for Gresik Figure 52-1 Measurement Points Figure 52-2 Measurement Flow for Key Inspecting System Figure 52-3 Flow of Inspection Procedure Figure 54-1 Relationship between Power Utility Companies and METI in Japan Figure 61-1 Operating Time (Years) for PLTU

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

1 GENERAL 11 Background

Power demand in the Republic of Indonesia has steadily increased since the economic crisis in 1997 However the power supply system to the consumers still does not seem to work efficiently and seems to become the bottleneck toward the economic recovery in Indonesia For the above reason JICA carried out the study on the optimum power sources development in Java-Bali system (Power Sector Study for the Optimum Power Sources Development) from 2001 to 2002 In the Study JICA proposed recommendations on short-term countermeasures and mid-term plans from the viewpoint of stable power supply especially in Java-Bali system because the occurrence of shortage of reserve margin for power supply in Java-Bali system in 2004 had been anticipated And the immediate implementation of those recommendations was required Based on the above needs JICA conducted ldquoBasic Study for Project Formation Related to Mining and Manufacturing (The Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in the Republic Indonesia)rdquo in June 2003 In the Preliminary Study JICA mission studied on the current situation and identified the issues relating to the improvement measures for existing power generation facilities recommended in the Study in 2003 and formulated a specified project resulting from the confirmation of needs and consultation with relevant organizations in Indonesia The specific content was stipulated in the Minutes of Meeting agreed on July 3 2003 between JICA Ministry of Energy and Mineral Resources (MEMR) and PT PLN (Persero) Based on the Project Formation Study the Government of Republic of Indonesia officially requested the Government of Japan to implement the Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in July 23 2004 and the Government of Japan accepted the request and decided to conduct the Study in 2005 The tight power supply balance in Java-Bali region envisaged at the project formation study was fortunately avoided due to the effect by tariff hike and depressing power demand such as restricted connection to new customers which had been imposed up to July 2003 In year 2004 the actual demand under ran the projected demand

In year 2005 power demand has been increasing again and exceeded the past maximum peak load On the other hand any power stations except an expansion of thermal station (Muara Tawar Gas Turbine 858 MW) have not been reinforced up to now since the economic crisis For the above reason the phenomena of shortage for power supply and appreciate reserve margin were observed since April 2005 The envisaged tight power supply balance imposing

1 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

forced-demand control for large consumers has become the realistic issue In year 2006 new power stations are scheduled to start the commercial operation On the other hand due to the increase of power demand and decrease of exploitation of gas and oil in Indonesia it is worried about stable supply of fuels for power stations Further more due to the difficulty of land acquisition transmission expansion plan cannot keep the implementation schedule which means that tight supply balance might not be resolved even though new power stations are put into operation For the above reasons the study on the improvement measures for electric power generation facilities is expected

12 Purpose of the Study

The purpose of the Study is to develop the improvement measures for existing power stations to meet the power demand in short and middle terms in Java-Bali region based on the above background and to conduct the technology transfer relating the effective and appropriate operation and maintenance for the existing power stations

13 Study Area and Scope of Work 131 Study Area

The objective power stations are the following sixteen (16) power stations in Java-Bali regions and their locations are figure below

Final Report 1 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Owner Power Station Type Fuel Total Output (MW)

Suralaya Conventional Coal 400 MWtimes4 600 MW times 3 3400Conventional MFO 50 MWtimes2

CC GasHSD (130 MW times 3 + 200 MW) times 2 BL Tanjung Priok

Gas Turbine GasHSD 26 MW times 2 1430Conventional MFO 50 MW times 2 + 200 MW Tambak Lorok

CC GasHSD (10965 MW times 3 + 188 MW) times 2BL 1334CC GasHSD 10075 MW times 3 + 15958 MW Grati

Gas Turbine HSD 10075 MW times 3 764Perak Conventional MFO 50 MW times 2 100

Gas Turbine HSD 2135 + 2010 + 4200 times 2 Pesanggaran Diesel HSD 9 units Total 6568 MW 201

Gilimanuk Gas Turbine HSD 1338 MW 134Pemaron CC HSD 488 MW times 2 + 484 MW 150Saguling Hydro - 17518 MW times 4 70072

IP

Soedirman Hydro - 6030 times 3 1809Conventional GasMFO 100 MWtimes3 + 200 MW times 2 Muara Karang

CC GasHSD 10786 MWtimes3 + 18510 MW 1209Conventional GasMFO 100 MW times 2 + 200 MW times 2 Gresik

CC GasHSD (11245 MW times 3 + 18891 MW) times 3BL 2239Paiton Conventional Coal 400 MW times 2 800Muara Tawar CC GasHSD 140 MWtimes5 + 220 MW 920Cirata Hydro - 126 MW times 8 1008

PJB

Sutami Hydro - 35 MW times 3 105

Note HSD means High Speed Diesel Oil MFO means Marine Fuel Oil CC means Combined Cycle

(as of Nov2005)

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line

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The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

132 Scope of Work

The Study is to develop the improvement measures relating to the existing power facilities and operation and maintenance based on the analyses of current situation of the objective power stations in order to reduce the gap between the installed capacity (total rated capacity approximately 19500 MW) and available power supply capacity (approximately 14500 MW) which is regarded as the cause of tight of power balance and accounted to about 5000 MW (26 of total installed capacity) The Study is consisted of the following scope of work

(1) Preliminary Survey Stage

The following survey will be carried out in order to confirm the current situation of each power facilities in Java-Bali region

1) Collection of data and information of the following items through the investigation of the relevant organization in Indonesia and electric power facilities in Java-Bali Region a) Performance of power generation facilities b) Current situation of operation maintenance and inspection c) Organization and regulation for operation maintenance and inspection d) Needs for the technology transfer on operation maintenance and inspection e) 500 kV transmission line of Java-Bali system f) Plan of fuel supply

2) Review of the related reports and other relevant information

(2) Analysis and Examination Stage

Based on the result of the Preliminary Survey Stage current situation and management system would be analyzed for each power generation facilities and necessary countermeasures would be examined The following items will be considered in each power generation facilities

1) Improvement measures of power generation facilities including rehabilitation modification and re-powering

2) Improvement measures of management for operation maintenance and inspection

3) Economic and financial analysis of the above mentioned improvement

4) Grading the power facilities in need of improvement

(3) Technology Transfer Stage

Based on the impact and the needs for the technology transfer on operation maintenance

Final Report 1 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

and inspection with are confirmed in the Preliminary Survey Stage technology transfer on operation maintenance and inspection will be conducted at the time of maintenance and inspection

(4) Recommendation Stage

Considering the results of the above mentioned stages the following plan and recommendation will be submitted

1) Rehabilitation modification or re-powering plan of the power generation facilities

2) Management plan and general guidelines of operation maintenance and inspection

3) Recommendation to the organization and regulation for enhancing the capability of operation maintenance and inspection

4) Development plan of human resources for operation maintenance and inspection

1 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

2 RECOGNITION OF CURRENT SITUATION IN JAVA-BALI REGION 21 Confirmation of Power Development Plan 211 Power Development Plan

(1) Power Development Plan based on April 25 2005

The following tables show the power development plan from the year 2005 to 2015 for Java-Bali region and whole Indonesia as of April 2005

Table 21-1 Power Development Plan in Java-Bali Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Required Energy Residents GWh 28612 30074 31640 33315 35107 37016 38984 41015 43111 45277 47515 Public GWh 3851 4012 4179 4352 4534 4719 4868 5022 5181 5345 5514 Commercial GWh 13013 14526 16202 18060 20121 22478 25102 28024 31279 34906 38948 Industry GWh 35674 38484 41759 45439 49508 54205 59176 64515 70290 76557 83372Required Total GWh 81150 87095 93779 101166 109269 118418 128131 138576 149861 162085 175350Growth Rate - 73 77 79 80 84 82 82 81 82 8 System Loss (TampD) 114 110 104 103 103 102 101 101 100 100 100 Station Use 4 4 4 4 4 4 4 4 4 3 3Total Loss 15 15 14 14 14 14 14 14 14 13 13Load Factor 72 72 72 73 73 73 74 74 74 74 7Generation GWh 93665 100196 107274 115680 124861 135264 146261 158125 170889 183208 198201Peak Load MW 14851 15886 17008 18090 19525 21152 22563 24393 26362 28262 30575 Capacity at the beginning of the Year MW 18658 18658 21573 22298 23823 25773 28153 30296 32002 34363 36684Committed Project PLN Portion 0 730 60 945 720 0 0 0 0 0 0Muara Karang Repowering PLTGU 720Muara Tawar Extension PLTGU 225Priok Extension PLTGU 720Pemaron Extension PLTGU 50Cilegon PLTGU 730Cibuni PLTP 10 Private Portion 0 2040 290 580 0 0 0 0 0 0 0Tanjung Jati B 12 PLTU 1320Cilacap 1-2 PLTU 600Kamojang 4 PLTP 60Wayang Windu PLTP 110Dieng PLTP 60 60Darajat 3 PLTP 110Patuha PLTP 60 120Bedugul PLTP 10Anyer PLTGU 400New Project Plan Addition of New Generator 0 145 375 0 1230 2380 2330 1890 2360 2320 2720Muara Tawar Add On 2 PLTGU 145 225Kamojang 5 PLTP 60PLTU PLTU 500 660 1200 660 660 1320 1320PLTG PLTG 200 400 200 400PLTGU PLTGU 150 730 1460 730 730 1000 1000 1000Pump Storage Upper Cisokan PLTA 500 500 Total Additional Capacity MW 0 2915 725 1525 1950 2380 2330 1890 2360 2320 2720Total System Capacity MW 18658 21573 22298 23823 25773 28153 30483 32186 34362 36683 39404Reserve Margin 26 36 31 32 32 33 35 32 30 30 29Required Capacity MW 20048 21446 22961 24421 26359 28556 29332 31711 34271 36741 39748Shortage or Surplus MW 1390 -127 663 598 586 403 -1151 -475 -91 58 344

2

4

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG

RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

2 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 6: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Unit Table Abbreviation Unit

bbl Barrel (1 bbl = 159 litter)

GWh Gigawatt-hour

kW Kilowatt

kWh Kilowatt-hour ( 1 kWh = 860 kcal) (1 kcal = 3968 BTU)

MMBTU 106 British Thermal Unit (MM = 106)

MMSCF 106 Standard Cubic Feet (MM = 106)

mmscfd Million Standard Cubic Feet per Day

MSCF 103 Standard Cubic Feet (M = 103)

MVA Mega-volt-ampere

MW Megawatt

MWh Megawatt-hour

VA Volt-ampere

References

(1) ldquoThe Project Formation Study for the Improvement of Utilization of Electric Power Facilities in Java-Bali Region in the Republic of Indonesiardquo September 2003 JICA

(2) ldquoThe Preliminary Study for the Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Regionrdquo June 29 2005 JICA

(3) ldquoBasic Strategy of Japanrsquos ODA Loan (The Medium-Term Strategy for Overseas Economic Cooperation)rdquo April 2005 Japan Bank for International Cooperation

(4) ldquoEx-post Evaluation Report on ODA Loan Project 1999 (Gas Firing Modification Works of Gresik Steam Power Plant Units III and IV)rdquo Japan Bank for International Cooperation

(5) ldquoEx-post Evaluation Report on ODA Loan Project 2002 (Priok Steam Power Plant Unit 3 amp 4 Rehabilitation Project)rdquo Japan Bank for International Cooperation

(6) ldquoStudy Report for CDMJI 2004 (Feasibility Study on the Effective Utilization of Biogas Recovery at Waste Disposal in Indonesia)rdquo 2004 KAJIMA Corporation and YACHIYO Engineering CO LTD

(7) ldquoPolicy Working Paper 2438 (Measurements of Poverty in Indonesia 1996 1999 and Beyond)rdquo 2000 The World Bank

- 3 - Draft Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- i - Draft Final Report

TABLE OF CONTENTS 1 General 1 - 1 11 Background 1 - 1 12 Purpose of the Study 1 - 2 13 Study Area and Scope of Work 1 - 2

131 Study Area 1 - 2 132 Scope of Work 1 - 4

2 Recognition of Current Situation in Java-Bali Region 2 - 1 21 Confirmation of Power Development Plan 2 - 1

211 Power Development Plan 2 - 1 212 Transmission System Expansion Plan 2 - 6

22 Confirmation of Fuel Supply Plan 2 - 9 221 Fuel Oil Prices 2 - 9 222 Natural Gas 2 - 9 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region 2 - 11

23 Confirmation of Financial Status of PLN and Power Generation Companies 2 - 12 231 PLN 2 - 12 232 PJB 2 - 14 233 Indonesia Power (IP) 2 - 15

24 Review of Collected Data and Information Relating to Technology Transfer 2 - 16 241 Thermal Power Station 2 - 16 242 Hydropower Station 2 - 19

25 Current Status of JBIC Export Credit 2 - 22 251 Agreement on Export Credit Line 2 - 22 252 Basic Condition of Export Credit Line 2 - 22 253 Current Status of Export Credit Line Procedure in Indonesia 2 - 23 254 Export Credit Line Currently Planned by PLN 2 - 24

26 Confirmation of Environmental Regulation Relating for Power Sector 2 - 26 261 Background of Environmental and Social Consideration in Indonesia 2 - 26 262 Institution of Environmental and Social Consideration and Legal Framework 2 - 27 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities 2 - 29 264 Environmental Quality 2 - 31 265 Stakeholder 2 - 32

3 Review of Existing Electric Power Generation Facilities 3 - 1 31 Confirmation of Current Status and Issues Relating to Facilities 3 - 1

311 Thermal Power Stations 3 - 1 312 Hydropower Stations 3 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - ii -

32 Confirmation of Current Status and Issues Relating to Operation and Maintenance 3 - 57 321 Thermal Power Stations 3 - 57 322 Hydropower Stations 3 - 95

33 Confirmation of Current Status and Recommendation on Improvement Relating to the Existing Power Facilities 3 -137 331 System Stability 3 -137 332 Existing Transmission Substation Facilities and Availability 3 -138 333 Number of Service Interruptions 3 -139 334 Frequency 3 -141 335 Voltage 3 -141

4 Rehabilitation Modification and Repowering Plans based on Existing Facilities 4 - 1 41 Thermal Power Stations 4 - 1

411 Technical Study 4 - 1 412 Economic Financial Analysis 4 - 17 413 Environmental and Social Consideration 4 - 39

42 Hydropower Stations 4 - 59 421 Technical Study 4 - 59 422 Economic Financial Analysis 4 - 60 423 Environmental and Social Consideration 4 - 60

5 Improvement Measures relating to Operation Maintenance and Inspection 5 - 1 51 Toward Improvement of Operation Performance 5 - 1

511 PLN and North American Reliability Council (NERC) 5 - 1 512 Maintenance Optimization Program (MOP) 5 - 2

52 Thermal Power Station 5 - 5 521 Improvements to prevent Routine Accidents and Troubles 5 - 6 522 Improvement Plans of Scheduled Inspection Work from Operational Aspect 5 - 18

53 Hydropower Stations 5 - 25 54 Regulations related to Power Utilities Companies in Japan 5 - 28

541 Regulations Related to Electricity Utilities Industry Law 5 - 28 542 Other Related Regulations and Qualified Personnel in Japan 5 - 35

55 Guideline and Management Plan for Thermal Power Station 5 - 37 551 System and Regulations on the Operation MaintenanceInspection Management 5 - 37 552 Management Plans and Guideline for the Operation Maintenance Inspection Management of the Existing Thermal Power Equipment 5 - 41 553 Human Resources Development 5 - 45 554 Safety Management 5 - 47

56 Guideline and Management Plan for Hydropower Station 5 - 49 561 Items for Operation Job 5 - 49 562 Items for Maintenance Job 5 - 50

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- iii - Draft Final Report

563 Items for Training 5 - 52 564 Items for Safety Work 5 - 56 565 Sample of Regulation Rule Standard Manual for Operation Maintenance and Safety 5 - 57

6 Technology Transfer 6 - 1 61 Thermal Power Station 6 - 1

611 Background 6 - 1 612 Technology Transfer 6 - 4 613 List of Participants 6 - 16 614 List of Distributed Material in the Technology Transfer 6 - 18

62 Hydropower Station 6 - 20 621 Background 6 - 20 622 Technology Transfer 6 - 22 623 List of Participants 6 - 26 624 List of Distributed Material in the Technology Transfer 6 - 26

7 Conclusion and Recommendation 7 - 1 71 Conclusion 7 - 1

711 Thermal Power Stations 7 - 1 712 Hydropower Stations 7 - 3 713 Power Facilities (Transmission Line and Substation) 7 - 3 714 Technology Transfer for Remaining Life Assessment (RLA) 7 - 3

72 Recommendation 7 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - iv -

LIST OF TABLES Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Table 21-1 Power Development Plan in Java-Bali Region Table 21-2 Power Development Plan for Whole Indonesia Table 21-3 Power Development Plan by Fuel Type Table 21-4 Announcement of Coal Fired Power Plant Projects Table 22-1 Gas Demand and Supply Balance from 2006 to 2015 Table 23-1 Profit and Loss Statement of PLN Table 23-2 Profit and Loss Statement of PJB Table 23-3 Profit and Loss Statement of IP Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Table 25-1 Loan Condition of JBIC Export Credit Table 26-1 Ambient Air Quality Standards Table 26-2 Emission Gas Standards Table 26-3 Ambient Water Quality Standards Table 26-4 Ambient Sea Water Quality Standards Table 26-5 Wastewater Standards Table 26-6 Noise Level Standards Table 26-7 Vibration Level Standards Table 26-8 Odor Standards Table 31-1 Summary of Performance and Capacity Data of Objective 12 Thermal Power

Stations Table 31-2 Capacity Data Summaries of 12 Thermal Power Stations Table 31-3 Capacity Derating Summaries on PLTGUsPLTGs Table 31-4 Main Features for Muara Tawar (PJB) Power Station Table 31-5 Main Features for Gresik Power Station Table 31-6 Main Features for Paiton Power Station Table 31-7 Main Features for Perak Power Station Table 31-8 Main Features for Tanjung Priok Power Station Table 31-9 Main Features for Muara Karang Power Station Table 31-10 Main Feature for Tambak Lorok Power Station Table 31-11 Main Features for Grati Power Station Table 31-12 Main Features for Suralaya Power Station Table 31-13 Main Features for Pesanggaran Power Station Table 31-14 Main Features for Gilimanuk Power Station Table 31-15 Main Features for Pemaron Power Station Table 31-16 (1) Original Proposals of Rehabilitation Modification and Repowering Plans for IP Table 31-16 (2) Original Proposals of Rehabilitation Modification and Repowering Plans for PJB

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- v - Draft Final Report

Table 31-17 Additional Proposals of Oil Reduction Plans Table 31-18 Final Proposals for Further Study Table 31-19 Main Features of Objective Hydropower Stations Table 31-20 Annuals Scheduled Outage and Forced Outage Hour (Saguling) Table 31-21 Analysis Scheduled Outage and Forced Outage Hour (Cirata) Table 31-22 Analysis Scheduled Outage and Forced Outage Hour (Soedirman) Table 31-23 Analysis Scheduled Outage and Forced Outage Hour (Sutami) Table 32-1 Forced Outage (Times) for Thermal Power Stations Table 32-2 Forced Outage (Hours) for Thermal Power Stations Table 32-3 Number of Forced Outages (Times) for PLTU Table 32-4 Number of Forced Outages (Times) for PLTG Table 32-5 Number of Forced Outages (Times) for PLTGU Table 32-6 Records of Scheduled MaintenanceInspection for 2003 2004 and 2005 by Unit

Type Table 32-7 PlansActual of Scheduled MaintenanceInspection for 2006 by Unit Type

(As of July 2006) Table 32-8 System for Maintenance Division at Power Station Table 32-9 Sharing of Role between Maintenance Department of the Power Station and

Maintenance Business Unit (UBHARUHAR) Table 32-10 Support System in UBHAR for Scheduled MaintenanceInspection Work Table 32-11(1)~(4) Summary of Forced Outage for 2003 2004 and 2005 at Each Unit Type Table 32-12(1)~(11) Summary of Forced Outage for 2003 2004 and 2005 at Each Power Station Table 32-13 Cause of Scheduled OutageForced Outage amp Outage Hour (Saguling) Table 32-14 Cause of Scheduled OutageForced Outage amp Outage Hour (Cirata) Table 32-15 Cause of Scheduled OutageForced Outage amp Outage Hour (Soedirman) Table 32-16 Cause of Scheduled OutageForced Outage amp Outage Hour (Sutami) Table 41-1 Final Plans for Further Study at 2nd Steering Committee Table 41-2 UBP Semarang Thermal Power Station and Power Units Table 41-3 UBP PerakGrati Thermal Power Station and Power Units Table 41-4 UBP Bali Power Units List Table 41-5 Outline of Proposed Plans Table 41-6 Results of Economic Analysis Table 41-7 Result of Financial Analysis Table 41-8 Measures toward Implementation Table 41-9 Economic Comparison amp Financial Analysis for Proposed Repowering Plans Table 41-10 Economic Analysis for Each Power Station Basis Table 41-11 Economic Analysis for Oil Reduction Plan Table 41-12 Financial Analysis for Each Power Station Basis Table 41-13 Financial Analysis for Oil Reduction Plan Table 41-14 (1) Scoping Results of the Repowering Plan in Tambak Lorok Thermal Power Station Table 41-14 (2) Scoping Results of the Repowering Plan in Grati Thermal Power Station

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - vi -

Table 41-14 (3) Scoping Results of the Repowering Plan in Gilimanuk Thermal Power Station Table 41-15 (1) Scoping Results of the Improvement Plan in UBP Semarang Table 41-15 (2) Scoping Results of the Improvement Plan in UBP PerakGrati Table 41-15 (3) Scoping Results of the Improvement Plan in UBP Bali Table 41-16 (1) Draft Outline of KA-ANDAL for Repowering Plan (Tambak Lorok Power

Station) Table 41-16 (2) Draft Outline of KA-ANDAL for Repowering Plan (Gilimanuk Power Station) Table 42-1 Proposed Rehabilitation Modification and Repowering Plans Table 51-1 Examples of Common Indicators Table 51-2 Key Performance Indicators for Reliability Management Table 52-1 Implementation Procedure of Scheduled Inspection Table 52-2 Sharing of Roles Table 52-3 Scheduled Inspection Shortening Method (Questionnaire Result Summary

Sheet) Table 54-1 Regulated Electricity related Accident Report Table 55-1 Items for Operation Management Table 55-2 Routine Inspection Items Table 61-1 Achievement of RLA and RehabilitationModification Table 61-2 Result of Questionnaire for Technology Transfer Table 61-3 Level of Understanding for Technology Transfer (713 714) Table 61-4 Result of Questionnaire for Technology Transfer Table 61-5 Level of Understanding for Technology Transfer (724) Table 7-1 Recommendations Table 7-2 Summary of Objective 16 Power Stations relating to Operation and Maintenance

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- vii - Draft Final Report

LIST OF FIGURES

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line Figure 21-1 Southerly 500 kV Transmission Line Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO Figure 26-1 (1) Organization Chart for Ministry Energy and Mineral Resources Figure 26-1 (2) Organization Chart for MEMR (Environmental Section) Figure 26-2 Involvement Procedure for Public Process of AMDAL Figure 26-3 Procedure for Implementation of Environmental Impact Assessment Figure 31-1 Distribution of Gas from Producer to UP Gresik Figure 32-1 Daily Load Curve in Java-Bali Regions (22 August 2006) Figure 32-2 Annual Operation Performance Relating Hours () for Objective Power Stations Figure 32-3 Inflow and Spilled Water at Saguling Reservoir Figure 32-4 Reservoir Operation in Saguling and Cirata Figure 32-4 Number of Service Interruption of Transformer per Unit Figure 33-5 Power Flow Drawing in 500 kV Java-Bali (2007) Figure 33-1 500kV Power Flow in the Maximum Load of Java 2004 (September 28th 1830) Figure 33-2 Service Interruptions by Source of Faults (times) Figure 33-3 Number of Service Interruptions of Transmission Line per 100 km Circuit Figure 41-1 Gilimanuk Power Station Layout Figure 41-2 UBP Semarang Three Power Stations Figure 41-3 Grati Power Station Layout Figure 41-4 UBP Bali Three Power Stations and Submarine Cables Figure 41-5(1) Topography of Power Plant in Surrounding (Tambak Lorok Power Station) Figure 41-5(2) Topography of power Plant in Surrounding (Grati Power Station) Figure 41-5(3) Topography of Power Plant in Surrounding (Gilimanuk Power Station) Figure 51-1 Comparison with NERC for EAF (Gresik power station) Figure 51-2 Flowchart of Maintenance Optimization Program at PJB Figure 51-3 Result of the Assessment (quoted from P17-Plant Assessment Gresik) Figure 51-4 Asset Management Performance Meter for Gresik Figure 52-1 Measurement Points Figure 52-2 Measurement Flow for Key Inspecting System Figure 52-3 Flow of Inspection Procedure Figure 54-1 Relationship between Power Utility Companies and METI in Japan Figure 61-1 Operating Time (Years) for PLTU

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

1 GENERAL 11 Background

Power demand in the Republic of Indonesia has steadily increased since the economic crisis in 1997 However the power supply system to the consumers still does not seem to work efficiently and seems to become the bottleneck toward the economic recovery in Indonesia For the above reason JICA carried out the study on the optimum power sources development in Java-Bali system (Power Sector Study for the Optimum Power Sources Development) from 2001 to 2002 In the Study JICA proposed recommendations on short-term countermeasures and mid-term plans from the viewpoint of stable power supply especially in Java-Bali system because the occurrence of shortage of reserve margin for power supply in Java-Bali system in 2004 had been anticipated And the immediate implementation of those recommendations was required Based on the above needs JICA conducted ldquoBasic Study for Project Formation Related to Mining and Manufacturing (The Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in the Republic Indonesia)rdquo in June 2003 In the Preliminary Study JICA mission studied on the current situation and identified the issues relating to the improvement measures for existing power generation facilities recommended in the Study in 2003 and formulated a specified project resulting from the confirmation of needs and consultation with relevant organizations in Indonesia The specific content was stipulated in the Minutes of Meeting agreed on July 3 2003 between JICA Ministry of Energy and Mineral Resources (MEMR) and PT PLN (Persero) Based on the Project Formation Study the Government of Republic of Indonesia officially requested the Government of Japan to implement the Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in July 23 2004 and the Government of Japan accepted the request and decided to conduct the Study in 2005 The tight power supply balance in Java-Bali region envisaged at the project formation study was fortunately avoided due to the effect by tariff hike and depressing power demand such as restricted connection to new customers which had been imposed up to July 2003 In year 2004 the actual demand under ran the projected demand

In year 2005 power demand has been increasing again and exceeded the past maximum peak load On the other hand any power stations except an expansion of thermal station (Muara Tawar Gas Turbine 858 MW) have not been reinforced up to now since the economic crisis For the above reason the phenomena of shortage for power supply and appreciate reserve margin were observed since April 2005 The envisaged tight power supply balance imposing

1 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

forced-demand control for large consumers has become the realistic issue In year 2006 new power stations are scheduled to start the commercial operation On the other hand due to the increase of power demand and decrease of exploitation of gas and oil in Indonesia it is worried about stable supply of fuels for power stations Further more due to the difficulty of land acquisition transmission expansion plan cannot keep the implementation schedule which means that tight supply balance might not be resolved even though new power stations are put into operation For the above reasons the study on the improvement measures for electric power generation facilities is expected

12 Purpose of the Study

The purpose of the Study is to develop the improvement measures for existing power stations to meet the power demand in short and middle terms in Java-Bali region based on the above background and to conduct the technology transfer relating the effective and appropriate operation and maintenance for the existing power stations

13 Study Area and Scope of Work 131 Study Area

The objective power stations are the following sixteen (16) power stations in Java-Bali regions and their locations are figure below

Final Report 1 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Owner Power Station Type Fuel Total Output (MW)

Suralaya Conventional Coal 400 MWtimes4 600 MW times 3 3400Conventional MFO 50 MWtimes2

CC GasHSD (130 MW times 3 + 200 MW) times 2 BL Tanjung Priok

Gas Turbine GasHSD 26 MW times 2 1430Conventional MFO 50 MW times 2 + 200 MW Tambak Lorok

CC GasHSD (10965 MW times 3 + 188 MW) times 2BL 1334CC GasHSD 10075 MW times 3 + 15958 MW Grati

Gas Turbine HSD 10075 MW times 3 764Perak Conventional MFO 50 MW times 2 100

Gas Turbine HSD 2135 + 2010 + 4200 times 2 Pesanggaran Diesel HSD 9 units Total 6568 MW 201

Gilimanuk Gas Turbine HSD 1338 MW 134Pemaron CC HSD 488 MW times 2 + 484 MW 150Saguling Hydro - 17518 MW times 4 70072

IP

Soedirman Hydro - 6030 times 3 1809Conventional GasMFO 100 MWtimes3 + 200 MW times 2 Muara Karang

CC GasHSD 10786 MWtimes3 + 18510 MW 1209Conventional GasMFO 100 MW times 2 + 200 MW times 2 Gresik

CC GasHSD (11245 MW times 3 + 18891 MW) times 3BL 2239Paiton Conventional Coal 400 MW times 2 800Muara Tawar CC GasHSD 140 MWtimes5 + 220 MW 920Cirata Hydro - 126 MW times 8 1008

PJB

Sutami Hydro - 35 MW times 3 105

Note HSD means High Speed Diesel Oil MFO means Marine Fuel Oil CC means Combined Cycle

(as of Nov2005)

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line

1 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

132 Scope of Work

The Study is to develop the improvement measures relating to the existing power facilities and operation and maintenance based on the analyses of current situation of the objective power stations in order to reduce the gap between the installed capacity (total rated capacity approximately 19500 MW) and available power supply capacity (approximately 14500 MW) which is regarded as the cause of tight of power balance and accounted to about 5000 MW (26 of total installed capacity) The Study is consisted of the following scope of work

(1) Preliminary Survey Stage

The following survey will be carried out in order to confirm the current situation of each power facilities in Java-Bali region

1) Collection of data and information of the following items through the investigation of the relevant organization in Indonesia and electric power facilities in Java-Bali Region a) Performance of power generation facilities b) Current situation of operation maintenance and inspection c) Organization and regulation for operation maintenance and inspection d) Needs for the technology transfer on operation maintenance and inspection e) 500 kV transmission line of Java-Bali system f) Plan of fuel supply

2) Review of the related reports and other relevant information

(2) Analysis and Examination Stage

Based on the result of the Preliminary Survey Stage current situation and management system would be analyzed for each power generation facilities and necessary countermeasures would be examined The following items will be considered in each power generation facilities

1) Improvement measures of power generation facilities including rehabilitation modification and re-powering

2) Improvement measures of management for operation maintenance and inspection

3) Economic and financial analysis of the above mentioned improvement

4) Grading the power facilities in need of improvement

(3) Technology Transfer Stage

Based on the impact and the needs for the technology transfer on operation maintenance

Final Report 1 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

and inspection with are confirmed in the Preliminary Survey Stage technology transfer on operation maintenance and inspection will be conducted at the time of maintenance and inspection

(4) Recommendation Stage

Considering the results of the above mentioned stages the following plan and recommendation will be submitted

1) Rehabilitation modification or re-powering plan of the power generation facilities

2) Management plan and general guidelines of operation maintenance and inspection

3) Recommendation to the organization and regulation for enhancing the capability of operation maintenance and inspection

4) Development plan of human resources for operation maintenance and inspection

1 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

2 RECOGNITION OF CURRENT SITUATION IN JAVA-BALI REGION 21 Confirmation of Power Development Plan 211 Power Development Plan

(1) Power Development Plan based on April 25 2005

The following tables show the power development plan from the year 2005 to 2015 for Java-Bali region and whole Indonesia as of April 2005

Table 21-1 Power Development Plan in Java-Bali Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Required Energy Residents GWh 28612 30074 31640 33315 35107 37016 38984 41015 43111 45277 47515 Public GWh 3851 4012 4179 4352 4534 4719 4868 5022 5181 5345 5514 Commercial GWh 13013 14526 16202 18060 20121 22478 25102 28024 31279 34906 38948 Industry GWh 35674 38484 41759 45439 49508 54205 59176 64515 70290 76557 83372Required Total GWh 81150 87095 93779 101166 109269 118418 128131 138576 149861 162085 175350Growth Rate - 73 77 79 80 84 82 82 81 82 8 System Loss (TampD) 114 110 104 103 103 102 101 101 100 100 100 Station Use 4 4 4 4 4 4 4 4 4 3 3Total Loss 15 15 14 14 14 14 14 14 14 13 13Load Factor 72 72 72 73 73 73 74 74 74 74 7Generation GWh 93665 100196 107274 115680 124861 135264 146261 158125 170889 183208 198201Peak Load MW 14851 15886 17008 18090 19525 21152 22563 24393 26362 28262 30575 Capacity at the beginning of the Year MW 18658 18658 21573 22298 23823 25773 28153 30296 32002 34363 36684Committed Project PLN Portion 0 730 60 945 720 0 0 0 0 0 0Muara Karang Repowering PLTGU 720Muara Tawar Extension PLTGU 225Priok Extension PLTGU 720Pemaron Extension PLTGU 50Cilegon PLTGU 730Cibuni PLTP 10 Private Portion 0 2040 290 580 0 0 0 0 0 0 0Tanjung Jati B 12 PLTU 1320Cilacap 1-2 PLTU 600Kamojang 4 PLTP 60Wayang Windu PLTP 110Dieng PLTP 60 60Darajat 3 PLTP 110Patuha PLTP 60 120Bedugul PLTP 10Anyer PLTGU 400New Project Plan Addition of New Generator 0 145 375 0 1230 2380 2330 1890 2360 2320 2720Muara Tawar Add On 2 PLTGU 145 225Kamojang 5 PLTP 60PLTU PLTU 500 660 1200 660 660 1320 1320PLTG PLTG 200 400 200 400PLTGU PLTGU 150 730 1460 730 730 1000 1000 1000Pump Storage Upper Cisokan PLTA 500 500 Total Additional Capacity MW 0 2915 725 1525 1950 2380 2330 1890 2360 2320 2720Total System Capacity MW 18658 21573 22298 23823 25773 28153 30483 32186 34362 36683 39404Reserve Margin 26 36 31 32 32 33 35 32 30 30 29Required Capacity MW 20048 21446 22961 24421 26359 28556 29332 31711 34271 36741 39748Shortage or Surplus MW 1390 -127 663 598 586 403 -1151 -475 -91 58 344

2

4

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG

RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

2 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 7: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- i - Draft Final Report

TABLE OF CONTENTS 1 General 1 - 1 11 Background 1 - 1 12 Purpose of the Study 1 - 2 13 Study Area and Scope of Work 1 - 2

131 Study Area 1 - 2 132 Scope of Work 1 - 4

2 Recognition of Current Situation in Java-Bali Region 2 - 1 21 Confirmation of Power Development Plan 2 - 1

211 Power Development Plan 2 - 1 212 Transmission System Expansion Plan 2 - 6

22 Confirmation of Fuel Supply Plan 2 - 9 221 Fuel Oil Prices 2 - 9 222 Natural Gas 2 - 9 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region 2 - 11

23 Confirmation of Financial Status of PLN and Power Generation Companies 2 - 12 231 PLN 2 - 12 232 PJB 2 - 14 233 Indonesia Power (IP) 2 - 15

24 Review of Collected Data and Information Relating to Technology Transfer 2 - 16 241 Thermal Power Station 2 - 16 242 Hydropower Station 2 - 19

25 Current Status of JBIC Export Credit 2 - 22 251 Agreement on Export Credit Line 2 - 22 252 Basic Condition of Export Credit Line 2 - 22 253 Current Status of Export Credit Line Procedure in Indonesia 2 - 23 254 Export Credit Line Currently Planned by PLN 2 - 24

26 Confirmation of Environmental Regulation Relating for Power Sector 2 - 26 261 Background of Environmental and Social Consideration in Indonesia 2 - 26 262 Institution of Environmental and Social Consideration and Legal Framework 2 - 27 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities 2 - 29 264 Environmental Quality 2 - 31 265 Stakeholder 2 - 32

3 Review of Existing Electric Power Generation Facilities 3 - 1 31 Confirmation of Current Status and Issues Relating to Facilities 3 - 1

311 Thermal Power Stations 3 - 1 312 Hydropower Stations 3 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - ii -

32 Confirmation of Current Status and Issues Relating to Operation and Maintenance 3 - 57 321 Thermal Power Stations 3 - 57 322 Hydropower Stations 3 - 95

33 Confirmation of Current Status and Recommendation on Improvement Relating to the Existing Power Facilities 3 -137 331 System Stability 3 -137 332 Existing Transmission Substation Facilities and Availability 3 -138 333 Number of Service Interruptions 3 -139 334 Frequency 3 -141 335 Voltage 3 -141

4 Rehabilitation Modification and Repowering Plans based on Existing Facilities 4 - 1 41 Thermal Power Stations 4 - 1

411 Technical Study 4 - 1 412 Economic Financial Analysis 4 - 17 413 Environmental and Social Consideration 4 - 39

42 Hydropower Stations 4 - 59 421 Technical Study 4 - 59 422 Economic Financial Analysis 4 - 60 423 Environmental and Social Consideration 4 - 60

5 Improvement Measures relating to Operation Maintenance and Inspection 5 - 1 51 Toward Improvement of Operation Performance 5 - 1

511 PLN and North American Reliability Council (NERC) 5 - 1 512 Maintenance Optimization Program (MOP) 5 - 2

52 Thermal Power Station 5 - 5 521 Improvements to prevent Routine Accidents and Troubles 5 - 6 522 Improvement Plans of Scheduled Inspection Work from Operational Aspect 5 - 18

53 Hydropower Stations 5 - 25 54 Regulations related to Power Utilities Companies in Japan 5 - 28

541 Regulations Related to Electricity Utilities Industry Law 5 - 28 542 Other Related Regulations and Qualified Personnel in Japan 5 - 35

55 Guideline and Management Plan for Thermal Power Station 5 - 37 551 System and Regulations on the Operation MaintenanceInspection Management 5 - 37 552 Management Plans and Guideline for the Operation Maintenance Inspection Management of the Existing Thermal Power Equipment 5 - 41 553 Human Resources Development 5 - 45 554 Safety Management 5 - 47

56 Guideline and Management Plan for Hydropower Station 5 - 49 561 Items for Operation Job 5 - 49 562 Items for Maintenance Job 5 - 50

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- iii - Draft Final Report

563 Items for Training 5 - 52 564 Items for Safety Work 5 - 56 565 Sample of Regulation Rule Standard Manual for Operation Maintenance and Safety 5 - 57

6 Technology Transfer 6 - 1 61 Thermal Power Station 6 - 1

611 Background 6 - 1 612 Technology Transfer 6 - 4 613 List of Participants 6 - 16 614 List of Distributed Material in the Technology Transfer 6 - 18

62 Hydropower Station 6 - 20 621 Background 6 - 20 622 Technology Transfer 6 - 22 623 List of Participants 6 - 26 624 List of Distributed Material in the Technology Transfer 6 - 26

7 Conclusion and Recommendation 7 - 1 71 Conclusion 7 - 1

711 Thermal Power Stations 7 - 1 712 Hydropower Stations 7 - 3 713 Power Facilities (Transmission Line and Substation) 7 - 3 714 Technology Transfer for Remaining Life Assessment (RLA) 7 - 3

72 Recommendation 7 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - iv -

LIST OF TABLES Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Table 21-1 Power Development Plan in Java-Bali Region Table 21-2 Power Development Plan for Whole Indonesia Table 21-3 Power Development Plan by Fuel Type Table 21-4 Announcement of Coal Fired Power Plant Projects Table 22-1 Gas Demand and Supply Balance from 2006 to 2015 Table 23-1 Profit and Loss Statement of PLN Table 23-2 Profit and Loss Statement of PJB Table 23-3 Profit and Loss Statement of IP Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Table 25-1 Loan Condition of JBIC Export Credit Table 26-1 Ambient Air Quality Standards Table 26-2 Emission Gas Standards Table 26-3 Ambient Water Quality Standards Table 26-4 Ambient Sea Water Quality Standards Table 26-5 Wastewater Standards Table 26-6 Noise Level Standards Table 26-7 Vibration Level Standards Table 26-8 Odor Standards Table 31-1 Summary of Performance and Capacity Data of Objective 12 Thermal Power

Stations Table 31-2 Capacity Data Summaries of 12 Thermal Power Stations Table 31-3 Capacity Derating Summaries on PLTGUsPLTGs Table 31-4 Main Features for Muara Tawar (PJB) Power Station Table 31-5 Main Features for Gresik Power Station Table 31-6 Main Features for Paiton Power Station Table 31-7 Main Features for Perak Power Station Table 31-8 Main Features for Tanjung Priok Power Station Table 31-9 Main Features for Muara Karang Power Station Table 31-10 Main Feature for Tambak Lorok Power Station Table 31-11 Main Features for Grati Power Station Table 31-12 Main Features for Suralaya Power Station Table 31-13 Main Features for Pesanggaran Power Station Table 31-14 Main Features for Gilimanuk Power Station Table 31-15 Main Features for Pemaron Power Station Table 31-16 (1) Original Proposals of Rehabilitation Modification and Repowering Plans for IP Table 31-16 (2) Original Proposals of Rehabilitation Modification and Repowering Plans for PJB

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- v - Draft Final Report

Table 31-17 Additional Proposals of Oil Reduction Plans Table 31-18 Final Proposals for Further Study Table 31-19 Main Features of Objective Hydropower Stations Table 31-20 Annuals Scheduled Outage and Forced Outage Hour (Saguling) Table 31-21 Analysis Scheduled Outage and Forced Outage Hour (Cirata) Table 31-22 Analysis Scheduled Outage and Forced Outage Hour (Soedirman) Table 31-23 Analysis Scheduled Outage and Forced Outage Hour (Sutami) Table 32-1 Forced Outage (Times) for Thermal Power Stations Table 32-2 Forced Outage (Hours) for Thermal Power Stations Table 32-3 Number of Forced Outages (Times) for PLTU Table 32-4 Number of Forced Outages (Times) for PLTG Table 32-5 Number of Forced Outages (Times) for PLTGU Table 32-6 Records of Scheduled MaintenanceInspection for 2003 2004 and 2005 by Unit

Type Table 32-7 PlansActual of Scheduled MaintenanceInspection for 2006 by Unit Type

(As of July 2006) Table 32-8 System for Maintenance Division at Power Station Table 32-9 Sharing of Role between Maintenance Department of the Power Station and

Maintenance Business Unit (UBHARUHAR) Table 32-10 Support System in UBHAR for Scheduled MaintenanceInspection Work Table 32-11(1)~(4) Summary of Forced Outage for 2003 2004 and 2005 at Each Unit Type Table 32-12(1)~(11) Summary of Forced Outage for 2003 2004 and 2005 at Each Power Station Table 32-13 Cause of Scheduled OutageForced Outage amp Outage Hour (Saguling) Table 32-14 Cause of Scheduled OutageForced Outage amp Outage Hour (Cirata) Table 32-15 Cause of Scheduled OutageForced Outage amp Outage Hour (Soedirman) Table 32-16 Cause of Scheduled OutageForced Outage amp Outage Hour (Sutami) Table 41-1 Final Plans for Further Study at 2nd Steering Committee Table 41-2 UBP Semarang Thermal Power Station and Power Units Table 41-3 UBP PerakGrati Thermal Power Station and Power Units Table 41-4 UBP Bali Power Units List Table 41-5 Outline of Proposed Plans Table 41-6 Results of Economic Analysis Table 41-7 Result of Financial Analysis Table 41-8 Measures toward Implementation Table 41-9 Economic Comparison amp Financial Analysis for Proposed Repowering Plans Table 41-10 Economic Analysis for Each Power Station Basis Table 41-11 Economic Analysis for Oil Reduction Plan Table 41-12 Financial Analysis for Each Power Station Basis Table 41-13 Financial Analysis for Oil Reduction Plan Table 41-14 (1) Scoping Results of the Repowering Plan in Tambak Lorok Thermal Power Station Table 41-14 (2) Scoping Results of the Repowering Plan in Grati Thermal Power Station

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - vi -

Table 41-14 (3) Scoping Results of the Repowering Plan in Gilimanuk Thermal Power Station Table 41-15 (1) Scoping Results of the Improvement Plan in UBP Semarang Table 41-15 (2) Scoping Results of the Improvement Plan in UBP PerakGrati Table 41-15 (3) Scoping Results of the Improvement Plan in UBP Bali Table 41-16 (1) Draft Outline of KA-ANDAL for Repowering Plan (Tambak Lorok Power

Station) Table 41-16 (2) Draft Outline of KA-ANDAL for Repowering Plan (Gilimanuk Power Station) Table 42-1 Proposed Rehabilitation Modification and Repowering Plans Table 51-1 Examples of Common Indicators Table 51-2 Key Performance Indicators for Reliability Management Table 52-1 Implementation Procedure of Scheduled Inspection Table 52-2 Sharing of Roles Table 52-3 Scheduled Inspection Shortening Method (Questionnaire Result Summary

Sheet) Table 54-1 Regulated Electricity related Accident Report Table 55-1 Items for Operation Management Table 55-2 Routine Inspection Items Table 61-1 Achievement of RLA and RehabilitationModification Table 61-2 Result of Questionnaire for Technology Transfer Table 61-3 Level of Understanding for Technology Transfer (713 714) Table 61-4 Result of Questionnaire for Technology Transfer Table 61-5 Level of Understanding for Technology Transfer (724) Table 7-1 Recommendations Table 7-2 Summary of Objective 16 Power Stations relating to Operation and Maintenance

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- vii - Draft Final Report

LIST OF FIGURES

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line Figure 21-1 Southerly 500 kV Transmission Line Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO Figure 26-1 (1) Organization Chart for Ministry Energy and Mineral Resources Figure 26-1 (2) Organization Chart for MEMR (Environmental Section) Figure 26-2 Involvement Procedure for Public Process of AMDAL Figure 26-3 Procedure for Implementation of Environmental Impact Assessment Figure 31-1 Distribution of Gas from Producer to UP Gresik Figure 32-1 Daily Load Curve in Java-Bali Regions (22 August 2006) Figure 32-2 Annual Operation Performance Relating Hours () for Objective Power Stations Figure 32-3 Inflow and Spilled Water at Saguling Reservoir Figure 32-4 Reservoir Operation in Saguling and Cirata Figure 32-4 Number of Service Interruption of Transformer per Unit Figure 33-5 Power Flow Drawing in 500 kV Java-Bali (2007) Figure 33-1 500kV Power Flow in the Maximum Load of Java 2004 (September 28th 1830) Figure 33-2 Service Interruptions by Source of Faults (times) Figure 33-3 Number of Service Interruptions of Transmission Line per 100 km Circuit Figure 41-1 Gilimanuk Power Station Layout Figure 41-2 UBP Semarang Three Power Stations Figure 41-3 Grati Power Station Layout Figure 41-4 UBP Bali Three Power Stations and Submarine Cables Figure 41-5(1) Topography of Power Plant in Surrounding (Tambak Lorok Power Station) Figure 41-5(2) Topography of power Plant in Surrounding (Grati Power Station) Figure 41-5(3) Topography of Power Plant in Surrounding (Gilimanuk Power Station) Figure 51-1 Comparison with NERC for EAF (Gresik power station) Figure 51-2 Flowchart of Maintenance Optimization Program at PJB Figure 51-3 Result of the Assessment (quoted from P17-Plant Assessment Gresik) Figure 51-4 Asset Management Performance Meter for Gresik Figure 52-1 Measurement Points Figure 52-2 Measurement Flow for Key Inspecting System Figure 52-3 Flow of Inspection Procedure Figure 54-1 Relationship between Power Utility Companies and METI in Japan Figure 61-1 Operating Time (Years) for PLTU

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

1 GENERAL 11 Background

Power demand in the Republic of Indonesia has steadily increased since the economic crisis in 1997 However the power supply system to the consumers still does not seem to work efficiently and seems to become the bottleneck toward the economic recovery in Indonesia For the above reason JICA carried out the study on the optimum power sources development in Java-Bali system (Power Sector Study for the Optimum Power Sources Development) from 2001 to 2002 In the Study JICA proposed recommendations on short-term countermeasures and mid-term plans from the viewpoint of stable power supply especially in Java-Bali system because the occurrence of shortage of reserve margin for power supply in Java-Bali system in 2004 had been anticipated And the immediate implementation of those recommendations was required Based on the above needs JICA conducted ldquoBasic Study for Project Formation Related to Mining and Manufacturing (The Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in the Republic Indonesia)rdquo in June 2003 In the Preliminary Study JICA mission studied on the current situation and identified the issues relating to the improvement measures for existing power generation facilities recommended in the Study in 2003 and formulated a specified project resulting from the confirmation of needs and consultation with relevant organizations in Indonesia The specific content was stipulated in the Minutes of Meeting agreed on July 3 2003 between JICA Ministry of Energy and Mineral Resources (MEMR) and PT PLN (Persero) Based on the Project Formation Study the Government of Republic of Indonesia officially requested the Government of Japan to implement the Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in July 23 2004 and the Government of Japan accepted the request and decided to conduct the Study in 2005 The tight power supply balance in Java-Bali region envisaged at the project formation study was fortunately avoided due to the effect by tariff hike and depressing power demand such as restricted connection to new customers which had been imposed up to July 2003 In year 2004 the actual demand under ran the projected demand

In year 2005 power demand has been increasing again and exceeded the past maximum peak load On the other hand any power stations except an expansion of thermal station (Muara Tawar Gas Turbine 858 MW) have not been reinforced up to now since the economic crisis For the above reason the phenomena of shortage for power supply and appreciate reserve margin were observed since April 2005 The envisaged tight power supply balance imposing

1 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

forced-demand control for large consumers has become the realistic issue In year 2006 new power stations are scheduled to start the commercial operation On the other hand due to the increase of power demand and decrease of exploitation of gas and oil in Indonesia it is worried about stable supply of fuels for power stations Further more due to the difficulty of land acquisition transmission expansion plan cannot keep the implementation schedule which means that tight supply balance might not be resolved even though new power stations are put into operation For the above reasons the study on the improvement measures for electric power generation facilities is expected

12 Purpose of the Study

The purpose of the Study is to develop the improvement measures for existing power stations to meet the power demand in short and middle terms in Java-Bali region based on the above background and to conduct the technology transfer relating the effective and appropriate operation and maintenance for the existing power stations

13 Study Area and Scope of Work 131 Study Area

The objective power stations are the following sixteen (16) power stations in Java-Bali regions and their locations are figure below

Final Report 1 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Owner Power Station Type Fuel Total Output (MW)

Suralaya Conventional Coal 400 MWtimes4 600 MW times 3 3400Conventional MFO 50 MWtimes2

CC GasHSD (130 MW times 3 + 200 MW) times 2 BL Tanjung Priok

Gas Turbine GasHSD 26 MW times 2 1430Conventional MFO 50 MW times 2 + 200 MW Tambak Lorok

CC GasHSD (10965 MW times 3 + 188 MW) times 2BL 1334CC GasHSD 10075 MW times 3 + 15958 MW Grati

Gas Turbine HSD 10075 MW times 3 764Perak Conventional MFO 50 MW times 2 100

Gas Turbine HSD 2135 + 2010 + 4200 times 2 Pesanggaran Diesel HSD 9 units Total 6568 MW 201

Gilimanuk Gas Turbine HSD 1338 MW 134Pemaron CC HSD 488 MW times 2 + 484 MW 150Saguling Hydro - 17518 MW times 4 70072

IP

Soedirman Hydro - 6030 times 3 1809Conventional GasMFO 100 MWtimes3 + 200 MW times 2 Muara Karang

CC GasHSD 10786 MWtimes3 + 18510 MW 1209Conventional GasMFO 100 MW times 2 + 200 MW times 2 Gresik

CC GasHSD (11245 MW times 3 + 18891 MW) times 3BL 2239Paiton Conventional Coal 400 MW times 2 800Muara Tawar CC GasHSD 140 MWtimes5 + 220 MW 920Cirata Hydro - 126 MW times 8 1008

PJB

Sutami Hydro - 35 MW times 3 105

Note HSD means High Speed Diesel Oil MFO means Marine Fuel Oil CC means Combined Cycle

(as of Nov2005)

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line

1 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

132 Scope of Work

The Study is to develop the improvement measures relating to the existing power facilities and operation and maintenance based on the analyses of current situation of the objective power stations in order to reduce the gap between the installed capacity (total rated capacity approximately 19500 MW) and available power supply capacity (approximately 14500 MW) which is regarded as the cause of tight of power balance and accounted to about 5000 MW (26 of total installed capacity) The Study is consisted of the following scope of work

(1) Preliminary Survey Stage

The following survey will be carried out in order to confirm the current situation of each power facilities in Java-Bali region

1) Collection of data and information of the following items through the investigation of the relevant organization in Indonesia and electric power facilities in Java-Bali Region a) Performance of power generation facilities b) Current situation of operation maintenance and inspection c) Organization and regulation for operation maintenance and inspection d) Needs for the technology transfer on operation maintenance and inspection e) 500 kV transmission line of Java-Bali system f) Plan of fuel supply

2) Review of the related reports and other relevant information

(2) Analysis and Examination Stage

Based on the result of the Preliminary Survey Stage current situation and management system would be analyzed for each power generation facilities and necessary countermeasures would be examined The following items will be considered in each power generation facilities

1) Improvement measures of power generation facilities including rehabilitation modification and re-powering

2) Improvement measures of management for operation maintenance and inspection

3) Economic and financial analysis of the above mentioned improvement

4) Grading the power facilities in need of improvement

(3) Technology Transfer Stage

Based on the impact and the needs for the technology transfer on operation maintenance

Final Report 1 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

and inspection with are confirmed in the Preliminary Survey Stage technology transfer on operation maintenance and inspection will be conducted at the time of maintenance and inspection

(4) Recommendation Stage

Considering the results of the above mentioned stages the following plan and recommendation will be submitted

1) Rehabilitation modification or re-powering plan of the power generation facilities

2) Management plan and general guidelines of operation maintenance and inspection

3) Recommendation to the organization and regulation for enhancing the capability of operation maintenance and inspection

4) Development plan of human resources for operation maintenance and inspection

1 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

2 RECOGNITION OF CURRENT SITUATION IN JAVA-BALI REGION 21 Confirmation of Power Development Plan 211 Power Development Plan

(1) Power Development Plan based on April 25 2005

The following tables show the power development plan from the year 2005 to 2015 for Java-Bali region and whole Indonesia as of April 2005

Table 21-1 Power Development Plan in Java-Bali Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Required Energy Residents GWh 28612 30074 31640 33315 35107 37016 38984 41015 43111 45277 47515 Public GWh 3851 4012 4179 4352 4534 4719 4868 5022 5181 5345 5514 Commercial GWh 13013 14526 16202 18060 20121 22478 25102 28024 31279 34906 38948 Industry GWh 35674 38484 41759 45439 49508 54205 59176 64515 70290 76557 83372Required Total GWh 81150 87095 93779 101166 109269 118418 128131 138576 149861 162085 175350Growth Rate - 73 77 79 80 84 82 82 81 82 8 System Loss (TampD) 114 110 104 103 103 102 101 101 100 100 100 Station Use 4 4 4 4 4 4 4 4 4 3 3Total Loss 15 15 14 14 14 14 14 14 14 13 13Load Factor 72 72 72 73 73 73 74 74 74 74 7Generation GWh 93665 100196 107274 115680 124861 135264 146261 158125 170889 183208 198201Peak Load MW 14851 15886 17008 18090 19525 21152 22563 24393 26362 28262 30575 Capacity at the beginning of the Year MW 18658 18658 21573 22298 23823 25773 28153 30296 32002 34363 36684Committed Project PLN Portion 0 730 60 945 720 0 0 0 0 0 0Muara Karang Repowering PLTGU 720Muara Tawar Extension PLTGU 225Priok Extension PLTGU 720Pemaron Extension PLTGU 50Cilegon PLTGU 730Cibuni PLTP 10 Private Portion 0 2040 290 580 0 0 0 0 0 0 0Tanjung Jati B 12 PLTU 1320Cilacap 1-2 PLTU 600Kamojang 4 PLTP 60Wayang Windu PLTP 110Dieng PLTP 60 60Darajat 3 PLTP 110Patuha PLTP 60 120Bedugul PLTP 10Anyer PLTGU 400New Project Plan Addition of New Generator 0 145 375 0 1230 2380 2330 1890 2360 2320 2720Muara Tawar Add On 2 PLTGU 145 225Kamojang 5 PLTP 60PLTU PLTU 500 660 1200 660 660 1320 1320PLTG PLTG 200 400 200 400PLTGU PLTGU 150 730 1460 730 730 1000 1000 1000Pump Storage Upper Cisokan PLTA 500 500 Total Additional Capacity MW 0 2915 725 1525 1950 2380 2330 1890 2360 2320 2720Total System Capacity MW 18658 21573 22298 23823 25773 28153 30483 32186 34362 36683 39404Reserve Margin 26 36 31 32 32 33 35 32 30 30 29Required Capacity MW 20048 21446 22961 24421 26359 28556 29332 31711 34271 36741 39748Shortage or Surplus MW 1390 -127 663 598 586 403 -1151 -475 -91 58 344

2

4

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG

RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

2 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 8: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - ii -

32 Confirmation of Current Status and Issues Relating to Operation and Maintenance 3 - 57 321 Thermal Power Stations 3 - 57 322 Hydropower Stations 3 - 95

33 Confirmation of Current Status and Recommendation on Improvement Relating to the Existing Power Facilities 3 -137 331 System Stability 3 -137 332 Existing Transmission Substation Facilities and Availability 3 -138 333 Number of Service Interruptions 3 -139 334 Frequency 3 -141 335 Voltage 3 -141

4 Rehabilitation Modification and Repowering Plans based on Existing Facilities 4 - 1 41 Thermal Power Stations 4 - 1

411 Technical Study 4 - 1 412 Economic Financial Analysis 4 - 17 413 Environmental and Social Consideration 4 - 39

42 Hydropower Stations 4 - 59 421 Technical Study 4 - 59 422 Economic Financial Analysis 4 - 60 423 Environmental and Social Consideration 4 - 60

5 Improvement Measures relating to Operation Maintenance and Inspection 5 - 1 51 Toward Improvement of Operation Performance 5 - 1

511 PLN and North American Reliability Council (NERC) 5 - 1 512 Maintenance Optimization Program (MOP) 5 - 2

52 Thermal Power Station 5 - 5 521 Improvements to prevent Routine Accidents and Troubles 5 - 6 522 Improvement Plans of Scheduled Inspection Work from Operational Aspect 5 - 18

53 Hydropower Stations 5 - 25 54 Regulations related to Power Utilities Companies in Japan 5 - 28

541 Regulations Related to Electricity Utilities Industry Law 5 - 28 542 Other Related Regulations and Qualified Personnel in Japan 5 - 35

55 Guideline and Management Plan for Thermal Power Station 5 - 37 551 System and Regulations on the Operation MaintenanceInspection Management 5 - 37 552 Management Plans and Guideline for the Operation Maintenance Inspection Management of the Existing Thermal Power Equipment 5 - 41 553 Human Resources Development 5 - 45 554 Safety Management 5 - 47

56 Guideline and Management Plan for Hydropower Station 5 - 49 561 Items for Operation Job 5 - 49 562 Items for Maintenance Job 5 - 50

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- iii - Draft Final Report

563 Items for Training 5 - 52 564 Items for Safety Work 5 - 56 565 Sample of Regulation Rule Standard Manual for Operation Maintenance and Safety 5 - 57

6 Technology Transfer 6 - 1 61 Thermal Power Station 6 - 1

611 Background 6 - 1 612 Technology Transfer 6 - 4 613 List of Participants 6 - 16 614 List of Distributed Material in the Technology Transfer 6 - 18

62 Hydropower Station 6 - 20 621 Background 6 - 20 622 Technology Transfer 6 - 22 623 List of Participants 6 - 26 624 List of Distributed Material in the Technology Transfer 6 - 26

7 Conclusion and Recommendation 7 - 1 71 Conclusion 7 - 1

711 Thermal Power Stations 7 - 1 712 Hydropower Stations 7 - 3 713 Power Facilities (Transmission Line and Substation) 7 - 3 714 Technology Transfer for Remaining Life Assessment (RLA) 7 - 3

72 Recommendation 7 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - iv -

LIST OF TABLES Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Table 21-1 Power Development Plan in Java-Bali Region Table 21-2 Power Development Plan for Whole Indonesia Table 21-3 Power Development Plan by Fuel Type Table 21-4 Announcement of Coal Fired Power Plant Projects Table 22-1 Gas Demand and Supply Balance from 2006 to 2015 Table 23-1 Profit and Loss Statement of PLN Table 23-2 Profit and Loss Statement of PJB Table 23-3 Profit and Loss Statement of IP Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Table 25-1 Loan Condition of JBIC Export Credit Table 26-1 Ambient Air Quality Standards Table 26-2 Emission Gas Standards Table 26-3 Ambient Water Quality Standards Table 26-4 Ambient Sea Water Quality Standards Table 26-5 Wastewater Standards Table 26-6 Noise Level Standards Table 26-7 Vibration Level Standards Table 26-8 Odor Standards Table 31-1 Summary of Performance and Capacity Data of Objective 12 Thermal Power

Stations Table 31-2 Capacity Data Summaries of 12 Thermal Power Stations Table 31-3 Capacity Derating Summaries on PLTGUsPLTGs Table 31-4 Main Features for Muara Tawar (PJB) Power Station Table 31-5 Main Features for Gresik Power Station Table 31-6 Main Features for Paiton Power Station Table 31-7 Main Features for Perak Power Station Table 31-8 Main Features for Tanjung Priok Power Station Table 31-9 Main Features for Muara Karang Power Station Table 31-10 Main Feature for Tambak Lorok Power Station Table 31-11 Main Features for Grati Power Station Table 31-12 Main Features for Suralaya Power Station Table 31-13 Main Features for Pesanggaran Power Station Table 31-14 Main Features for Gilimanuk Power Station Table 31-15 Main Features for Pemaron Power Station Table 31-16 (1) Original Proposals of Rehabilitation Modification and Repowering Plans for IP Table 31-16 (2) Original Proposals of Rehabilitation Modification and Repowering Plans for PJB

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- v - Draft Final Report

Table 31-17 Additional Proposals of Oil Reduction Plans Table 31-18 Final Proposals for Further Study Table 31-19 Main Features of Objective Hydropower Stations Table 31-20 Annuals Scheduled Outage and Forced Outage Hour (Saguling) Table 31-21 Analysis Scheduled Outage and Forced Outage Hour (Cirata) Table 31-22 Analysis Scheduled Outage and Forced Outage Hour (Soedirman) Table 31-23 Analysis Scheduled Outage and Forced Outage Hour (Sutami) Table 32-1 Forced Outage (Times) for Thermal Power Stations Table 32-2 Forced Outage (Hours) for Thermal Power Stations Table 32-3 Number of Forced Outages (Times) for PLTU Table 32-4 Number of Forced Outages (Times) for PLTG Table 32-5 Number of Forced Outages (Times) for PLTGU Table 32-6 Records of Scheduled MaintenanceInspection for 2003 2004 and 2005 by Unit

Type Table 32-7 PlansActual of Scheduled MaintenanceInspection for 2006 by Unit Type

(As of July 2006) Table 32-8 System for Maintenance Division at Power Station Table 32-9 Sharing of Role between Maintenance Department of the Power Station and

Maintenance Business Unit (UBHARUHAR) Table 32-10 Support System in UBHAR for Scheduled MaintenanceInspection Work Table 32-11(1)~(4) Summary of Forced Outage for 2003 2004 and 2005 at Each Unit Type Table 32-12(1)~(11) Summary of Forced Outage for 2003 2004 and 2005 at Each Power Station Table 32-13 Cause of Scheduled OutageForced Outage amp Outage Hour (Saguling) Table 32-14 Cause of Scheduled OutageForced Outage amp Outage Hour (Cirata) Table 32-15 Cause of Scheduled OutageForced Outage amp Outage Hour (Soedirman) Table 32-16 Cause of Scheduled OutageForced Outage amp Outage Hour (Sutami) Table 41-1 Final Plans for Further Study at 2nd Steering Committee Table 41-2 UBP Semarang Thermal Power Station and Power Units Table 41-3 UBP PerakGrati Thermal Power Station and Power Units Table 41-4 UBP Bali Power Units List Table 41-5 Outline of Proposed Plans Table 41-6 Results of Economic Analysis Table 41-7 Result of Financial Analysis Table 41-8 Measures toward Implementation Table 41-9 Economic Comparison amp Financial Analysis for Proposed Repowering Plans Table 41-10 Economic Analysis for Each Power Station Basis Table 41-11 Economic Analysis for Oil Reduction Plan Table 41-12 Financial Analysis for Each Power Station Basis Table 41-13 Financial Analysis for Oil Reduction Plan Table 41-14 (1) Scoping Results of the Repowering Plan in Tambak Lorok Thermal Power Station Table 41-14 (2) Scoping Results of the Repowering Plan in Grati Thermal Power Station

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - vi -

Table 41-14 (3) Scoping Results of the Repowering Plan in Gilimanuk Thermal Power Station Table 41-15 (1) Scoping Results of the Improvement Plan in UBP Semarang Table 41-15 (2) Scoping Results of the Improvement Plan in UBP PerakGrati Table 41-15 (3) Scoping Results of the Improvement Plan in UBP Bali Table 41-16 (1) Draft Outline of KA-ANDAL for Repowering Plan (Tambak Lorok Power

Station) Table 41-16 (2) Draft Outline of KA-ANDAL for Repowering Plan (Gilimanuk Power Station) Table 42-1 Proposed Rehabilitation Modification and Repowering Plans Table 51-1 Examples of Common Indicators Table 51-2 Key Performance Indicators for Reliability Management Table 52-1 Implementation Procedure of Scheduled Inspection Table 52-2 Sharing of Roles Table 52-3 Scheduled Inspection Shortening Method (Questionnaire Result Summary

Sheet) Table 54-1 Regulated Electricity related Accident Report Table 55-1 Items for Operation Management Table 55-2 Routine Inspection Items Table 61-1 Achievement of RLA and RehabilitationModification Table 61-2 Result of Questionnaire for Technology Transfer Table 61-3 Level of Understanding for Technology Transfer (713 714) Table 61-4 Result of Questionnaire for Technology Transfer Table 61-5 Level of Understanding for Technology Transfer (724) Table 7-1 Recommendations Table 7-2 Summary of Objective 16 Power Stations relating to Operation and Maintenance

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- vii - Draft Final Report

LIST OF FIGURES

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line Figure 21-1 Southerly 500 kV Transmission Line Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO Figure 26-1 (1) Organization Chart for Ministry Energy and Mineral Resources Figure 26-1 (2) Organization Chart for MEMR (Environmental Section) Figure 26-2 Involvement Procedure for Public Process of AMDAL Figure 26-3 Procedure for Implementation of Environmental Impact Assessment Figure 31-1 Distribution of Gas from Producer to UP Gresik Figure 32-1 Daily Load Curve in Java-Bali Regions (22 August 2006) Figure 32-2 Annual Operation Performance Relating Hours () for Objective Power Stations Figure 32-3 Inflow and Spilled Water at Saguling Reservoir Figure 32-4 Reservoir Operation in Saguling and Cirata Figure 32-4 Number of Service Interruption of Transformer per Unit Figure 33-5 Power Flow Drawing in 500 kV Java-Bali (2007) Figure 33-1 500kV Power Flow in the Maximum Load of Java 2004 (September 28th 1830) Figure 33-2 Service Interruptions by Source of Faults (times) Figure 33-3 Number of Service Interruptions of Transmission Line per 100 km Circuit Figure 41-1 Gilimanuk Power Station Layout Figure 41-2 UBP Semarang Three Power Stations Figure 41-3 Grati Power Station Layout Figure 41-4 UBP Bali Three Power Stations and Submarine Cables Figure 41-5(1) Topography of Power Plant in Surrounding (Tambak Lorok Power Station) Figure 41-5(2) Topography of power Plant in Surrounding (Grati Power Station) Figure 41-5(3) Topography of Power Plant in Surrounding (Gilimanuk Power Station) Figure 51-1 Comparison with NERC for EAF (Gresik power station) Figure 51-2 Flowchart of Maintenance Optimization Program at PJB Figure 51-3 Result of the Assessment (quoted from P17-Plant Assessment Gresik) Figure 51-4 Asset Management Performance Meter for Gresik Figure 52-1 Measurement Points Figure 52-2 Measurement Flow for Key Inspecting System Figure 52-3 Flow of Inspection Procedure Figure 54-1 Relationship between Power Utility Companies and METI in Japan Figure 61-1 Operating Time (Years) for PLTU

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

1 GENERAL 11 Background

Power demand in the Republic of Indonesia has steadily increased since the economic crisis in 1997 However the power supply system to the consumers still does not seem to work efficiently and seems to become the bottleneck toward the economic recovery in Indonesia For the above reason JICA carried out the study on the optimum power sources development in Java-Bali system (Power Sector Study for the Optimum Power Sources Development) from 2001 to 2002 In the Study JICA proposed recommendations on short-term countermeasures and mid-term plans from the viewpoint of stable power supply especially in Java-Bali system because the occurrence of shortage of reserve margin for power supply in Java-Bali system in 2004 had been anticipated And the immediate implementation of those recommendations was required Based on the above needs JICA conducted ldquoBasic Study for Project Formation Related to Mining and Manufacturing (The Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in the Republic Indonesia)rdquo in June 2003 In the Preliminary Study JICA mission studied on the current situation and identified the issues relating to the improvement measures for existing power generation facilities recommended in the Study in 2003 and formulated a specified project resulting from the confirmation of needs and consultation with relevant organizations in Indonesia The specific content was stipulated in the Minutes of Meeting agreed on July 3 2003 between JICA Ministry of Energy and Mineral Resources (MEMR) and PT PLN (Persero) Based on the Project Formation Study the Government of Republic of Indonesia officially requested the Government of Japan to implement the Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in July 23 2004 and the Government of Japan accepted the request and decided to conduct the Study in 2005 The tight power supply balance in Java-Bali region envisaged at the project formation study was fortunately avoided due to the effect by tariff hike and depressing power demand such as restricted connection to new customers which had been imposed up to July 2003 In year 2004 the actual demand under ran the projected demand

In year 2005 power demand has been increasing again and exceeded the past maximum peak load On the other hand any power stations except an expansion of thermal station (Muara Tawar Gas Turbine 858 MW) have not been reinforced up to now since the economic crisis For the above reason the phenomena of shortage for power supply and appreciate reserve margin were observed since April 2005 The envisaged tight power supply balance imposing

1 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

forced-demand control for large consumers has become the realistic issue In year 2006 new power stations are scheduled to start the commercial operation On the other hand due to the increase of power demand and decrease of exploitation of gas and oil in Indonesia it is worried about stable supply of fuels for power stations Further more due to the difficulty of land acquisition transmission expansion plan cannot keep the implementation schedule which means that tight supply balance might not be resolved even though new power stations are put into operation For the above reasons the study on the improvement measures for electric power generation facilities is expected

12 Purpose of the Study

The purpose of the Study is to develop the improvement measures for existing power stations to meet the power demand in short and middle terms in Java-Bali region based on the above background and to conduct the technology transfer relating the effective and appropriate operation and maintenance for the existing power stations

13 Study Area and Scope of Work 131 Study Area

The objective power stations are the following sixteen (16) power stations in Java-Bali regions and their locations are figure below

Final Report 1 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Owner Power Station Type Fuel Total Output (MW)

Suralaya Conventional Coal 400 MWtimes4 600 MW times 3 3400Conventional MFO 50 MWtimes2

CC GasHSD (130 MW times 3 + 200 MW) times 2 BL Tanjung Priok

Gas Turbine GasHSD 26 MW times 2 1430Conventional MFO 50 MW times 2 + 200 MW Tambak Lorok

CC GasHSD (10965 MW times 3 + 188 MW) times 2BL 1334CC GasHSD 10075 MW times 3 + 15958 MW Grati

Gas Turbine HSD 10075 MW times 3 764Perak Conventional MFO 50 MW times 2 100

Gas Turbine HSD 2135 + 2010 + 4200 times 2 Pesanggaran Diesel HSD 9 units Total 6568 MW 201

Gilimanuk Gas Turbine HSD 1338 MW 134Pemaron CC HSD 488 MW times 2 + 484 MW 150Saguling Hydro - 17518 MW times 4 70072

IP

Soedirman Hydro - 6030 times 3 1809Conventional GasMFO 100 MWtimes3 + 200 MW times 2 Muara Karang

CC GasHSD 10786 MWtimes3 + 18510 MW 1209Conventional GasMFO 100 MW times 2 + 200 MW times 2 Gresik

CC GasHSD (11245 MW times 3 + 18891 MW) times 3BL 2239Paiton Conventional Coal 400 MW times 2 800Muara Tawar CC GasHSD 140 MWtimes5 + 220 MW 920Cirata Hydro - 126 MW times 8 1008

PJB

Sutami Hydro - 35 MW times 3 105

Note HSD means High Speed Diesel Oil MFO means Marine Fuel Oil CC means Combined Cycle

(as of Nov2005)

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line

1 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

132 Scope of Work

The Study is to develop the improvement measures relating to the existing power facilities and operation and maintenance based on the analyses of current situation of the objective power stations in order to reduce the gap between the installed capacity (total rated capacity approximately 19500 MW) and available power supply capacity (approximately 14500 MW) which is regarded as the cause of tight of power balance and accounted to about 5000 MW (26 of total installed capacity) The Study is consisted of the following scope of work

(1) Preliminary Survey Stage

The following survey will be carried out in order to confirm the current situation of each power facilities in Java-Bali region

1) Collection of data and information of the following items through the investigation of the relevant organization in Indonesia and electric power facilities in Java-Bali Region a) Performance of power generation facilities b) Current situation of operation maintenance and inspection c) Organization and regulation for operation maintenance and inspection d) Needs for the technology transfer on operation maintenance and inspection e) 500 kV transmission line of Java-Bali system f) Plan of fuel supply

2) Review of the related reports and other relevant information

(2) Analysis and Examination Stage

Based on the result of the Preliminary Survey Stage current situation and management system would be analyzed for each power generation facilities and necessary countermeasures would be examined The following items will be considered in each power generation facilities

1) Improvement measures of power generation facilities including rehabilitation modification and re-powering

2) Improvement measures of management for operation maintenance and inspection

3) Economic and financial analysis of the above mentioned improvement

4) Grading the power facilities in need of improvement

(3) Technology Transfer Stage

Based on the impact and the needs for the technology transfer on operation maintenance

Final Report 1 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

and inspection with are confirmed in the Preliminary Survey Stage technology transfer on operation maintenance and inspection will be conducted at the time of maintenance and inspection

(4) Recommendation Stage

Considering the results of the above mentioned stages the following plan and recommendation will be submitted

1) Rehabilitation modification or re-powering plan of the power generation facilities

2) Management plan and general guidelines of operation maintenance and inspection

3) Recommendation to the organization and regulation for enhancing the capability of operation maintenance and inspection

4) Development plan of human resources for operation maintenance and inspection

1 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

2 RECOGNITION OF CURRENT SITUATION IN JAVA-BALI REGION 21 Confirmation of Power Development Plan 211 Power Development Plan

(1) Power Development Plan based on April 25 2005

The following tables show the power development plan from the year 2005 to 2015 for Java-Bali region and whole Indonesia as of April 2005

Table 21-1 Power Development Plan in Java-Bali Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Required Energy Residents GWh 28612 30074 31640 33315 35107 37016 38984 41015 43111 45277 47515 Public GWh 3851 4012 4179 4352 4534 4719 4868 5022 5181 5345 5514 Commercial GWh 13013 14526 16202 18060 20121 22478 25102 28024 31279 34906 38948 Industry GWh 35674 38484 41759 45439 49508 54205 59176 64515 70290 76557 83372Required Total GWh 81150 87095 93779 101166 109269 118418 128131 138576 149861 162085 175350Growth Rate - 73 77 79 80 84 82 82 81 82 8 System Loss (TampD) 114 110 104 103 103 102 101 101 100 100 100 Station Use 4 4 4 4 4 4 4 4 4 3 3Total Loss 15 15 14 14 14 14 14 14 14 13 13Load Factor 72 72 72 73 73 73 74 74 74 74 7Generation GWh 93665 100196 107274 115680 124861 135264 146261 158125 170889 183208 198201Peak Load MW 14851 15886 17008 18090 19525 21152 22563 24393 26362 28262 30575 Capacity at the beginning of the Year MW 18658 18658 21573 22298 23823 25773 28153 30296 32002 34363 36684Committed Project PLN Portion 0 730 60 945 720 0 0 0 0 0 0Muara Karang Repowering PLTGU 720Muara Tawar Extension PLTGU 225Priok Extension PLTGU 720Pemaron Extension PLTGU 50Cilegon PLTGU 730Cibuni PLTP 10 Private Portion 0 2040 290 580 0 0 0 0 0 0 0Tanjung Jati B 12 PLTU 1320Cilacap 1-2 PLTU 600Kamojang 4 PLTP 60Wayang Windu PLTP 110Dieng PLTP 60 60Darajat 3 PLTP 110Patuha PLTP 60 120Bedugul PLTP 10Anyer PLTGU 400New Project Plan Addition of New Generator 0 145 375 0 1230 2380 2330 1890 2360 2320 2720Muara Tawar Add On 2 PLTGU 145 225Kamojang 5 PLTP 60PLTU PLTU 500 660 1200 660 660 1320 1320PLTG PLTG 200 400 200 400PLTGU PLTGU 150 730 1460 730 730 1000 1000 1000Pump Storage Upper Cisokan PLTA 500 500 Total Additional Capacity MW 0 2915 725 1525 1950 2380 2330 1890 2360 2320 2720Total System Capacity MW 18658 21573 22298 23823 25773 28153 30483 32186 34362 36683 39404Reserve Margin 26 36 31 32 32 33 35 32 30 30 29Required Capacity MW 20048 21446 22961 24421 26359 28556 29332 31711 34271 36741 39748Shortage or Surplus MW 1390 -127 663 598 586 403 -1151 -475 -91 58 344

2

4

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG

RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

2 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 9: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- iii - Draft Final Report

563 Items for Training 5 - 52 564 Items for Safety Work 5 - 56 565 Sample of Regulation Rule Standard Manual for Operation Maintenance and Safety 5 - 57

6 Technology Transfer 6 - 1 61 Thermal Power Station 6 - 1

611 Background 6 - 1 612 Technology Transfer 6 - 4 613 List of Participants 6 - 16 614 List of Distributed Material in the Technology Transfer 6 - 18

62 Hydropower Station 6 - 20 621 Background 6 - 20 622 Technology Transfer 6 - 22 623 List of Participants 6 - 26 624 List of Distributed Material in the Technology Transfer 6 - 26

7 Conclusion and Recommendation 7 - 1 71 Conclusion 7 - 1

711 Thermal Power Stations 7 - 1 712 Hydropower Stations 7 - 3 713 Power Facilities (Transmission Line and Substation) 7 - 3 714 Technology Transfer for Remaining Life Assessment (RLA) 7 - 3

72 Recommendation 7 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - iv -

LIST OF TABLES Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Table 21-1 Power Development Plan in Java-Bali Region Table 21-2 Power Development Plan for Whole Indonesia Table 21-3 Power Development Plan by Fuel Type Table 21-4 Announcement of Coal Fired Power Plant Projects Table 22-1 Gas Demand and Supply Balance from 2006 to 2015 Table 23-1 Profit and Loss Statement of PLN Table 23-2 Profit and Loss Statement of PJB Table 23-3 Profit and Loss Statement of IP Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Table 25-1 Loan Condition of JBIC Export Credit Table 26-1 Ambient Air Quality Standards Table 26-2 Emission Gas Standards Table 26-3 Ambient Water Quality Standards Table 26-4 Ambient Sea Water Quality Standards Table 26-5 Wastewater Standards Table 26-6 Noise Level Standards Table 26-7 Vibration Level Standards Table 26-8 Odor Standards Table 31-1 Summary of Performance and Capacity Data of Objective 12 Thermal Power

Stations Table 31-2 Capacity Data Summaries of 12 Thermal Power Stations Table 31-3 Capacity Derating Summaries on PLTGUsPLTGs Table 31-4 Main Features for Muara Tawar (PJB) Power Station Table 31-5 Main Features for Gresik Power Station Table 31-6 Main Features for Paiton Power Station Table 31-7 Main Features for Perak Power Station Table 31-8 Main Features for Tanjung Priok Power Station Table 31-9 Main Features for Muara Karang Power Station Table 31-10 Main Feature for Tambak Lorok Power Station Table 31-11 Main Features for Grati Power Station Table 31-12 Main Features for Suralaya Power Station Table 31-13 Main Features for Pesanggaran Power Station Table 31-14 Main Features for Gilimanuk Power Station Table 31-15 Main Features for Pemaron Power Station Table 31-16 (1) Original Proposals of Rehabilitation Modification and Repowering Plans for IP Table 31-16 (2) Original Proposals of Rehabilitation Modification and Repowering Plans for PJB

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- v - Draft Final Report

Table 31-17 Additional Proposals of Oil Reduction Plans Table 31-18 Final Proposals for Further Study Table 31-19 Main Features of Objective Hydropower Stations Table 31-20 Annuals Scheduled Outage and Forced Outage Hour (Saguling) Table 31-21 Analysis Scheduled Outage and Forced Outage Hour (Cirata) Table 31-22 Analysis Scheduled Outage and Forced Outage Hour (Soedirman) Table 31-23 Analysis Scheduled Outage and Forced Outage Hour (Sutami) Table 32-1 Forced Outage (Times) for Thermal Power Stations Table 32-2 Forced Outage (Hours) for Thermal Power Stations Table 32-3 Number of Forced Outages (Times) for PLTU Table 32-4 Number of Forced Outages (Times) for PLTG Table 32-5 Number of Forced Outages (Times) for PLTGU Table 32-6 Records of Scheduled MaintenanceInspection for 2003 2004 and 2005 by Unit

Type Table 32-7 PlansActual of Scheduled MaintenanceInspection for 2006 by Unit Type

(As of July 2006) Table 32-8 System for Maintenance Division at Power Station Table 32-9 Sharing of Role between Maintenance Department of the Power Station and

Maintenance Business Unit (UBHARUHAR) Table 32-10 Support System in UBHAR for Scheduled MaintenanceInspection Work Table 32-11(1)~(4) Summary of Forced Outage for 2003 2004 and 2005 at Each Unit Type Table 32-12(1)~(11) Summary of Forced Outage for 2003 2004 and 2005 at Each Power Station Table 32-13 Cause of Scheduled OutageForced Outage amp Outage Hour (Saguling) Table 32-14 Cause of Scheduled OutageForced Outage amp Outage Hour (Cirata) Table 32-15 Cause of Scheduled OutageForced Outage amp Outage Hour (Soedirman) Table 32-16 Cause of Scheduled OutageForced Outage amp Outage Hour (Sutami) Table 41-1 Final Plans for Further Study at 2nd Steering Committee Table 41-2 UBP Semarang Thermal Power Station and Power Units Table 41-3 UBP PerakGrati Thermal Power Station and Power Units Table 41-4 UBP Bali Power Units List Table 41-5 Outline of Proposed Plans Table 41-6 Results of Economic Analysis Table 41-7 Result of Financial Analysis Table 41-8 Measures toward Implementation Table 41-9 Economic Comparison amp Financial Analysis for Proposed Repowering Plans Table 41-10 Economic Analysis for Each Power Station Basis Table 41-11 Economic Analysis for Oil Reduction Plan Table 41-12 Financial Analysis for Each Power Station Basis Table 41-13 Financial Analysis for Oil Reduction Plan Table 41-14 (1) Scoping Results of the Repowering Plan in Tambak Lorok Thermal Power Station Table 41-14 (2) Scoping Results of the Repowering Plan in Grati Thermal Power Station

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - vi -

Table 41-14 (3) Scoping Results of the Repowering Plan in Gilimanuk Thermal Power Station Table 41-15 (1) Scoping Results of the Improvement Plan in UBP Semarang Table 41-15 (2) Scoping Results of the Improvement Plan in UBP PerakGrati Table 41-15 (3) Scoping Results of the Improvement Plan in UBP Bali Table 41-16 (1) Draft Outline of KA-ANDAL for Repowering Plan (Tambak Lorok Power

Station) Table 41-16 (2) Draft Outline of KA-ANDAL for Repowering Plan (Gilimanuk Power Station) Table 42-1 Proposed Rehabilitation Modification and Repowering Plans Table 51-1 Examples of Common Indicators Table 51-2 Key Performance Indicators for Reliability Management Table 52-1 Implementation Procedure of Scheduled Inspection Table 52-2 Sharing of Roles Table 52-3 Scheduled Inspection Shortening Method (Questionnaire Result Summary

Sheet) Table 54-1 Regulated Electricity related Accident Report Table 55-1 Items for Operation Management Table 55-2 Routine Inspection Items Table 61-1 Achievement of RLA and RehabilitationModification Table 61-2 Result of Questionnaire for Technology Transfer Table 61-3 Level of Understanding for Technology Transfer (713 714) Table 61-4 Result of Questionnaire for Technology Transfer Table 61-5 Level of Understanding for Technology Transfer (724) Table 7-1 Recommendations Table 7-2 Summary of Objective 16 Power Stations relating to Operation and Maintenance

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- vii - Draft Final Report

LIST OF FIGURES

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line Figure 21-1 Southerly 500 kV Transmission Line Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO Figure 26-1 (1) Organization Chart for Ministry Energy and Mineral Resources Figure 26-1 (2) Organization Chart for MEMR (Environmental Section) Figure 26-2 Involvement Procedure for Public Process of AMDAL Figure 26-3 Procedure for Implementation of Environmental Impact Assessment Figure 31-1 Distribution of Gas from Producer to UP Gresik Figure 32-1 Daily Load Curve in Java-Bali Regions (22 August 2006) Figure 32-2 Annual Operation Performance Relating Hours () for Objective Power Stations Figure 32-3 Inflow and Spilled Water at Saguling Reservoir Figure 32-4 Reservoir Operation in Saguling and Cirata Figure 32-4 Number of Service Interruption of Transformer per Unit Figure 33-5 Power Flow Drawing in 500 kV Java-Bali (2007) Figure 33-1 500kV Power Flow in the Maximum Load of Java 2004 (September 28th 1830) Figure 33-2 Service Interruptions by Source of Faults (times) Figure 33-3 Number of Service Interruptions of Transmission Line per 100 km Circuit Figure 41-1 Gilimanuk Power Station Layout Figure 41-2 UBP Semarang Three Power Stations Figure 41-3 Grati Power Station Layout Figure 41-4 UBP Bali Three Power Stations and Submarine Cables Figure 41-5(1) Topography of Power Plant in Surrounding (Tambak Lorok Power Station) Figure 41-5(2) Topography of power Plant in Surrounding (Grati Power Station) Figure 41-5(3) Topography of Power Plant in Surrounding (Gilimanuk Power Station) Figure 51-1 Comparison with NERC for EAF (Gresik power station) Figure 51-2 Flowchart of Maintenance Optimization Program at PJB Figure 51-3 Result of the Assessment (quoted from P17-Plant Assessment Gresik) Figure 51-4 Asset Management Performance Meter for Gresik Figure 52-1 Measurement Points Figure 52-2 Measurement Flow for Key Inspecting System Figure 52-3 Flow of Inspection Procedure Figure 54-1 Relationship between Power Utility Companies and METI in Japan Figure 61-1 Operating Time (Years) for PLTU

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

1 GENERAL 11 Background

Power demand in the Republic of Indonesia has steadily increased since the economic crisis in 1997 However the power supply system to the consumers still does not seem to work efficiently and seems to become the bottleneck toward the economic recovery in Indonesia For the above reason JICA carried out the study on the optimum power sources development in Java-Bali system (Power Sector Study for the Optimum Power Sources Development) from 2001 to 2002 In the Study JICA proposed recommendations on short-term countermeasures and mid-term plans from the viewpoint of stable power supply especially in Java-Bali system because the occurrence of shortage of reserve margin for power supply in Java-Bali system in 2004 had been anticipated And the immediate implementation of those recommendations was required Based on the above needs JICA conducted ldquoBasic Study for Project Formation Related to Mining and Manufacturing (The Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in the Republic Indonesia)rdquo in June 2003 In the Preliminary Study JICA mission studied on the current situation and identified the issues relating to the improvement measures for existing power generation facilities recommended in the Study in 2003 and formulated a specified project resulting from the confirmation of needs and consultation with relevant organizations in Indonesia The specific content was stipulated in the Minutes of Meeting agreed on July 3 2003 between JICA Ministry of Energy and Mineral Resources (MEMR) and PT PLN (Persero) Based on the Project Formation Study the Government of Republic of Indonesia officially requested the Government of Japan to implement the Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in July 23 2004 and the Government of Japan accepted the request and decided to conduct the Study in 2005 The tight power supply balance in Java-Bali region envisaged at the project formation study was fortunately avoided due to the effect by tariff hike and depressing power demand such as restricted connection to new customers which had been imposed up to July 2003 In year 2004 the actual demand under ran the projected demand

In year 2005 power demand has been increasing again and exceeded the past maximum peak load On the other hand any power stations except an expansion of thermal station (Muara Tawar Gas Turbine 858 MW) have not been reinforced up to now since the economic crisis For the above reason the phenomena of shortage for power supply and appreciate reserve margin were observed since April 2005 The envisaged tight power supply balance imposing

1 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

forced-demand control for large consumers has become the realistic issue In year 2006 new power stations are scheduled to start the commercial operation On the other hand due to the increase of power demand and decrease of exploitation of gas and oil in Indonesia it is worried about stable supply of fuels for power stations Further more due to the difficulty of land acquisition transmission expansion plan cannot keep the implementation schedule which means that tight supply balance might not be resolved even though new power stations are put into operation For the above reasons the study on the improvement measures for electric power generation facilities is expected

12 Purpose of the Study

The purpose of the Study is to develop the improvement measures for existing power stations to meet the power demand in short and middle terms in Java-Bali region based on the above background and to conduct the technology transfer relating the effective and appropriate operation and maintenance for the existing power stations

13 Study Area and Scope of Work 131 Study Area

The objective power stations are the following sixteen (16) power stations in Java-Bali regions and their locations are figure below

Final Report 1 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Owner Power Station Type Fuel Total Output (MW)

Suralaya Conventional Coal 400 MWtimes4 600 MW times 3 3400Conventional MFO 50 MWtimes2

CC GasHSD (130 MW times 3 + 200 MW) times 2 BL Tanjung Priok

Gas Turbine GasHSD 26 MW times 2 1430Conventional MFO 50 MW times 2 + 200 MW Tambak Lorok

CC GasHSD (10965 MW times 3 + 188 MW) times 2BL 1334CC GasHSD 10075 MW times 3 + 15958 MW Grati

Gas Turbine HSD 10075 MW times 3 764Perak Conventional MFO 50 MW times 2 100

Gas Turbine HSD 2135 + 2010 + 4200 times 2 Pesanggaran Diesel HSD 9 units Total 6568 MW 201

Gilimanuk Gas Turbine HSD 1338 MW 134Pemaron CC HSD 488 MW times 2 + 484 MW 150Saguling Hydro - 17518 MW times 4 70072

IP

Soedirman Hydro - 6030 times 3 1809Conventional GasMFO 100 MWtimes3 + 200 MW times 2 Muara Karang

CC GasHSD 10786 MWtimes3 + 18510 MW 1209Conventional GasMFO 100 MW times 2 + 200 MW times 2 Gresik

CC GasHSD (11245 MW times 3 + 18891 MW) times 3BL 2239Paiton Conventional Coal 400 MW times 2 800Muara Tawar CC GasHSD 140 MWtimes5 + 220 MW 920Cirata Hydro - 126 MW times 8 1008

PJB

Sutami Hydro - 35 MW times 3 105

Note HSD means High Speed Diesel Oil MFO means Marine Fuel Oil CC means Combined Cycle

(as of Nov2005)

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line

1 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

132 Scope of Work

The Study is to develop the improvement measures relating to the existing power facilities and operation and maintenance based on the analyses of current situation of the objective power stations in order to reduce the gap between the installed capacity (total rated capacity approximately 19500 MW) and available power supply capacity (approximately 14500 MW) which is regarded as the cause of tight of power balance and accounted to about 5000 MW (26 of total installed capacity) The Study is consisted of the following scope of work

(1) Preliminary Survey Stage

The following survey will be carried out in order to confirm the current situation of each power facilities in Java-Bali region

1) Collection of data and information of the following items through the investigation of the relevant organization in Indonesia and electric power facilities in Java-Bali Region a) Performance of power generation facilities b) Current situation of operation maintenance and inspection c) Organization and regulation for operation maintenance and inspection d) Needs for the technology transfer on operation maintenance and inspection e) 500 kV transmission line of Java-Bali system f) Plan of fuel supply

2) Review of the related reports and other relevant information

(2) Analysis and Examination Stage

Based on the result of the Preliminary Survey Stage current situation and management system would be analyzed for each power generation facilities and necessary countermeasures would be examined The following items will be considered in each power generation facilities

1) Improvement measures of power generation facilities including rehabilitation modification and re-powering

2) Improvement measures of management for operation maintenance and inspection

3) Economic and financial analysis of the above mentioned improvement

4) Grading the power facilities in need of improvement

(3) Technology Transfer Stage

Based on the impact and the needs for the technology transfer on operation maintenance

Final Report 1 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

and inspection with are confirmed in the Preliminary Survey Stage technology transfer on operation maintenance and inspection will be conducted at the time of maintenance and inspection

(4) Recommendation Stage

Considering the results of the above mentioned stages the following plan and recommendation will be submitted

1) Rehabilitation modification or re-powering plan of the power generation facilities

2) Management plan and general guidelines of operation maintenance and inspection

3) Recommendation to the organization and regulation for enhancing the capability of operation maintenance and inspection

4) Development plan of human resources for operation maintenance and inspection

1 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

2 RECOGNITION OF CURRENT SITUATION IN JAVA-BALI REGION 21 Confirmation of Power Development Plan 211 Power Development Plan

(1) Power Development Plan based on April 25 2005

The following tables show the power development plan from the year 2005 to 2015 for Java-Bali region and whole Indonesia as of April 2005

Table 21-1 Power Development Plan in Java-Bali Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Required Energy Residents GWh 28612 30074 31640 33315 35107 37016 38984 41015 43111 45277 47515 Public GWh 3851 4012 4179 4352 4534 4719 4868 5022 5181 5345 5514 Commercial GWh 13013 14526 16202 18060 20121 22478 25102 28024 31279 34906 38948 Industry GWh 35674 38484 41759 45439 49508 54205 59176 64515 70290 76557 83372Required Total GWh 81150 87095 93779 101166 109269 118418 128131 138576 149861 162085 175350Growth Rate - 73 77 79 80 84 82 82 81 82 8 System Loss (TampD) 114 110 104 103 103 102 101 101 100 100 100 Station Use 4 4 4 4 4 4 4 4 4 3 3Total Loss 15 15 14 14 14 14 14 14 14 13 13Load Factor 72 72 72 73 73 73 74 74 74 74 7Generation GWh 93665 100196 107274 115680 124861 135264 146261 158125 170889 183208 198201Peak Load MW 14851 15886 17008 18090 19525 21152 22563 24393 26362 28262 30575 Capacity at the beginning of the Year MW 18658 18658 21573 22298 23823 25773 28153 30296 32002 34363 36684Committed Project PLN Portion 0 730 60 945 720 0 0 0 0 0 0Muara Karang Repowering PLTGU 720Muara Tawar Extension PLTGU 225Priok Extension PLTGU 720Pemaron Extension PLTGU 50Cilegon PLTGU 730Cibuni PLTP 10 Private Portion 0 2040 290 580 0 0 0 0 0 0 0Tanjung Jati B 12 PLTU 1320Cilacap 1-2 PLTU 600Kamojang 4 PLTP 60Wayang Windu PLTP 110Dieng PLTP 60 60Darajat 3 PLTP 110Patuha PLTP 60 120Bedugul PLTP 10Anyer PLTGU 400New Project Plan Addition of New Generator 0 145 375 0 1230 2380 2330 1890 2360 2320 2720Muara Tawar Add On 2 PLTGU 145 225Kamojang 5 PLTP 60PLTU PLTU 500 660 1200 660 660 1320 1320PLTG PLTG 200 400 200 400PLTGU PLTGU 150 730 1460 730 730 1000 1000 1000Pump Storage Upper Cisokan PLTA 500 500 Total Additional Capacity MW 0 2915 725 1525 1950 2380 2330 1890 2360 2320 2720Total System Capacity MW 18658 21573 22298 23823 25773 28153 30483 32186 34362 36683 39404Reserve Margin 26 36 31 32 32 33 35 32 30 30 29Required Capacity MW 20048 21446 22961 24421 26359 28556 29332 31711 34271 36741 39748Shortage or Surplus MW 1390 -127 663 598 586 403 -1151 -475 -91 58 344

2

4

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG

RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

2 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 10: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - iv -

LIST OF TABLES Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Table 21-1 Power Development Plan in Java-Bali Region Table 21-2 Power Development Plan for Whole Indonesia Table 21-3 Power Development Plan by Fuel Type Table 21-4 Announcement of Coal Fired Power Plant Projects Table 22-1 Gas Demand and Supply Balance from 2006 to 2015 Table 23-1 Profit and Loss Statement of PLN Table 23-2 Profit and Loss Statement of PJB Table 23-3 Profit and Loss Statement of IP Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Table 25-1 Loan Condition of JBIC Export Credit Table 26-1 Ambient Air Quality Standards Table 26-2 Emission Gas Standards Table 26-3 Ambient Water Quality Standards Table 26-4 Ambient Sea Water Quality Standards Table 26-5 Wastewater Standards Table 26-6 Noise Level Standards Table 26-7 Vibration Level Standards Table 26-8 Odor Standards Table 31-1 Summary of Performance and Capacity Data of Objective 12 Thermal Power

Stations Table 31-2 Capacity Data Summaries of 12 Thermal Power Stations Table 31-3 Capacity Derating Summaries on PLTGUsPLTGs Table 31-4 Main Features for Muara Tawar (PJB) Power Station Table 31-5 Main Features for Gresik Power Station Table 31-6 Main Features for Paiton Power Station Table 31-7 Main Features for Perak Power Station Table 31-8 Main Features for Tanjung Priok Power Station Table 31-9 Main Features for Muara Karang Power Station Table 31-10 Main Feature for Tambak Lorok Power Station Table 31-11 Main Features for Grati Power Station Table 31-12 Main Features for Suralaya Power Station Table 31-13 Main Features for Pesanggaran Power Station Table 31-14 Main Features for Gilimanuk Power Station Table 31-15 Main Features for Pemaron Power Station Table 31-16 (1) Original Proposals of Rehabilitation Modification and Repowering Plans for IP Table 31-16 (2) Original Proposals of Rehabilitation Modification and Repowering Plans for PJB

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- v - Draft Final Report

Table 31-17 Additional Proposals of Oil Reduction Plans Table 31-18 Final Proposals for Further Study Table 31-19 Main Features of Objective Hydropower Stations Table 31-20 Annuals Scheduled Outage and Forced Outage Hour (Saguling) Table 31-21 Analysis Scheduled Outage and Forced Outage Hour (Cirata) Table 31-22 Analysis Scheduled Outage and Forced Outage Hour (Soedirman) Table 31-23 Analysis Scheduled Outage and Forced Outage Hour (Sutami) Table 32-1 Forced Outage (Times) for Thermal Power Stations Table 32-2 Forced Outage (Hours) for Thermal Power Stations Table 32-3 Number of Forced Outages (Times) for PLTU Table 32-4 Number of Forced Outages (Times) for PLTG Table 32-5 Number of Forced Outages (Times) for PLTGU Table 32-6 Records of Scheduled MaintenanceInspection for 2003 2004 and 2005 by Unit

Type Table 32-7 PlansActual of Scheduled MaintenanceInspection for 2006 by Unit Type

(As of July 2006) Table 32-8 System for Maintenance Division at Power Station Table 32-9 Sharing of Role between Maintenance Department of the Power Station and

Maintenance Business Unit (UBHARUHAR) Table 32-10 Support System in UBHAR for Scheduled MaintenanceInspection Work Table 32-11(1)~(4) Summary of Forced Outage for 2003 2004 and 2005 at Each Unit Type Table 32-12(1)~(11) Summary of Forced Outage for 2003 2004 and 2005 at Each Power Station Table 32-13 Cause of Scheduled OutageForced Outage amp Outage Hour (Saguling) Table 32-14 Cause of Scheduled OutageForced Outage amp Outage Hour (Cirata) Table 32-15 Cause of Scheduled OutageForced Outage amp Outage Hour (Soedirman) Table 32-16 Cause of Scheduled OutageForced Outage amp Outage Hour (Sutami) Table 41-1 Final Plans for Further Study at 2nd Steering Committee Table 41-2 UBP Semarang Thermal Power Station and Power Units Table 41-3 UBP PerakGrati Thermal Power Station and Power Units Table 41-4 UBP Bali Power Units List Table 41-5 Outline of Proposed Plans Table 41-6 Results of Economic Analysis Table 41-7 Result of Financial Analysis Table 41-8 Measures toward Implementation Table 41-9 Economic Comparison amp Financial Analysis for Proposed Repowering Plans Table 41-10 Economic Analysis for Each Power Station Basis Table 41-11 Economic Analysis for Oil Reduction Plan Table 41-12 Financial Analysis for Each Power Station Basis Table 41-13 Financial Analysis for Oil Reduction Plan Table 41-14 (1) Scoping Results of the Repowering Plan in Tambak Lorok Thermal Power Station Table 41-14 (2) Scoping Results of the Repowering Plan in Grati Thermal Power Station

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - vi -

Table 41-14 (3) Scoping Results of the Repowering Plan in Gilimanuk Thermal Power Station Table 41-15 (1) Scoping Results of the Improvement Plan in UBP Semarang Table 41-15 (2) Scoping Results of the Improvement Plan in UBP PerakGrati Table 41-15 (3) Scoping Results of the Improvement Plan in UBP Bali Table 41-16 (1) Draft Outline of KA-ANDAL for Repowering Plan (Tambak Lorok Power

Station) Table 41-16 (2) Draft Outline of KA-ANDAL for Repowering Plan (Gilimanuk Power Station) Table 42-1 Proposed Rehabilitation Modification and Repowering Plans Table 51-1 Examples of Common Indicators Table 51-2 Key Performance Indicators for Reliability Management Table 52-1 Implementation Procedure of Scheduled Inspection Table 52-2 Sharing of Roles Table 52-3 Scheduled Inspection Shortening Method (Questionnaire Result Summary

Sheet) Table 54-1 Regulated Electricity related Accident Report Table 55-1 Items for Operation Management Table 55-2 Routine Inspection Items Table 61-1 Achievement of RLA and RehabilitationModification Table 61-2 Result of Questionnaire for Technology Transfer Table 61-3 Level of Understanding for Technology Transfer (713 714) Table 61-4 Result of Questionnaire for Technology Transfer Table 61-5 Level of Understanding for Technology Transfer (724) Table 7-1 Recommendations Table 7-2 Summary of Objective 16 Power Stations relating to Operation and Maintenance

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- vii - Draft Final Report

LIST OF FIGURES

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line Figure 21-1 Southerly 500 kV Transmission Line Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO Figure 26-1 (1) Organization Chart for Ministry Energy and Mineral Resources Figure 26-1 (2) Organization Chart for MEMR (Environmental Section) Figure 26-2 Involvement Procedure for Public Process of AMDAL Figure 26-3 Procedure for Implementation of Environmental Impact Assessment Figure 31-1 Distribution of Gas from Producer to UP Gresik Figure 32-1 Daily Load Curve in Java-Bali Regions (22 August 2006) Figure 32-2 Annual Operation Performance Relating Hours () for Objective Power Stations Figure 32-3 Inflow and Spilled Water at Saguling Reservoir Figure 32-4 Reservoir Operation in Saguling and Cirata Figure 32-4 Number of Service Interruption of Transformer per Unit Figure 33-5 Power Flow Drawing in 500 kV Java-Bali (2007) Figure 33-1 500kV Power Flow in the Maximum Load of Java 2004 (September 28th 1830) Figure 33-2 Service Interruptions by Source of Faults (times) Figure 33-3 Number of Service Interruptions of Transmission Line per 100 km Circuit Figure 41-1 Gilimanuk Power Station Layout Figure 41-2 UBP Semarang Three Power Stations Figure 41-3 Grati Power Station Layout Figure 41-4 UBP Bali Three Power Stations and Submarine Cables Figure 41-5(1) Topography of Power Plant in Surrounding (Tambak Lorok Power Station) Figure 41-5(2) Topography of power Plant in Surrounding (Grati Power Station) Figure 41-5(3) Topography of Power Plant in Surrounding (Gilimanuk Power Station) Figure 51-1 Comparison with NERC for EAF (Gresik power station) Figure 51-2 Flowchart of Maintenance Optimization Program at PJB Figure 51-3 Result of the Assessment (quoted from P17-Plant Assessment Gresik) Figure 51-4 Asset Management Performance Meter for Gresik Figure 52-1 Measurement Points Figure 52-2 Measurement Flow for Key Inspecting System Figure 52-3 Flow of Inspection Procedure Figure 54-1 Relationship between Power Utility Companies and METI in Japan Figure 61-1 Operating Time (Years) for PLTU

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

1 GENERAL 11 Background

Power demand in the Republic of Indonesia has steadily increased since the economic crisis in 1997 However the power supply system to the consumers still does not seem to work efficiently and seems to become the bottleneck toward the economic recovery in Indonesia For the above reason JICA carried out the study on the optimum power sources development in Java-Bali system (Power Sector Study for the Optimum Power Sources Development) from 2001 to 2002 In the Study JICA proposed recommendations on short-term countermeasures and mid-term plans from the viewpoint of stable power supply especially in Java-Bali system because the occurrence of shortage of reserve margin for power supply in Java-Bali system in 2004 had been anticipated And the immediate implementation of those recommendations was required Based on the above needs JICA conducted ldquoBasic Study for Project Formation Related to Mining and Manufacturing (The Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in the Republic Indonesia)rdquo in June 2003 In the Preliminary Study JICA mission studied on the current situation and identified the issues relating to the improvement measures for existing power generation facilities recommended in the Study in 2003 and formulated a specified project resulting from the confirmation of needs and consultation with relevant organizations in Indonesia The specific content was stipulated in the Minutes of Meeting agreed on July 3 2003 between JICA Ministry of Energy and Mineral Resources (MEMR) and PT PLN (Persero) Based on the Project Formation Study the Government of Republic of Indonesia officially requested the Government of Japan to implement the Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in July 23 2004 and the Government of Japan accepted the request and decided to conduct the Study in 2005 The tight power supply balance in Java-Bali region envisaged at the project formation study was fortunately avoided due to the effect by tariff hike and depressing power demand such as restricted connection to new customers which had been imposed up to July 2003 In year 2004 the actual demand under ran the projected demand

In year 2005 power demand has been increasing again and exceeded the past maximum peak load On the other hand any power stations except an expansion of thermal station (Muara Tawar Gas Turbine 858 MW) have not been reinforced up to now since the economic crisis For the above reason the phenomena of shortage for power supply and appreciate reserve margin were observed since April 2005 The envisaged tight power supply balance imposing

1 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

forced-demand control for large consumers has become the realistic issue In year 2006 new power stations are scheduled to start the commercial operation On the other hand due to the increase of power demand and decrease of exploitation of gas and oil in Indonesia it is worried about stable supply of fuels for power stations Further more due to the difficulty of land acquisition transmission expansion plan cannot keep the implementation schedule which means that tight supply balance might not be resolved even though new power stations are put into operation For the above reasons the study on the improvement measures for electric power generation facilities is expected

12 Purpose of the Study

The purpose of the Study is to develop the improvement measures for existing power stations to meet the power demand in short and middle terms in Java-Bali region based on the above background and to conduct the technology transfer relating the effective and appropriate operation and maintenance for the existing power stations

13 Study Area and Scope of Work 131 Study Area

The objective power stations are the following sixteen (16) power stations in Java-Bali regions and their locations are figure below

Final Report 1 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Owner Power Station Type Fuel Total Output (MW)

Suralaya Conventional Coal 400 MWtimes4 600 MW times 3 3400Conventional MFO 50 MWtimes2

CC GasHSD (130 MW times 3 + 200 MW) times 2 BL Tanjung Priok

Gas Turbine GasHSD 26 MW times 2 1430Conventional MFO 50 MW times 2 + 200 MW Tambak Lorok

CC GasHSD (10965 MW times 3 + 188 MW) times 2BL 1334CC GasHSD 10075 MW times 3 + 15958 MW Grati

Gas Turbine HSD 10075 MW times 3 764Perak Conventional MFO 50 MW times 2 100

Gas Turbine HSD 2135 + 2010 + 4200 times 2 Pesanggaran Diesel HSD 9 units Total 6568 MW 201

Gilimanuk Gas Turbine HSD 1338 MW 134Pemaron CC HSD 488 MW times 2 + 484 MW 150Saguling Hydro - 17518 MW times 4 70072

IP

Soedirman Hydro - 6030 times 3 1809Conventional GasMFO 100 MWtimes3 + 200 MW times 2 Muara Karang

CC GasHSD 10786 MWtimes3 + 18510 MW 1209Conventional GasMFO 100 MW times 2 + 200 MW times 2 Gresik

CC GasHSD (11245 MW times 3 + 18891 MW) times 3BL 2239Paiton Conventional Coal 400 MW times 2 800Muara Tawar CC GasHSD 140 MWtimes5 + 220 MW 920Cirata Hydro - 126 MW times 8 1008

PJB

Sutami Hydro - 35 MW times 3 105

Note HSD means High Speed Diesel Oil MFO means Marine Fuel Oil CC means Combined Cycle

(as of Nov2005)

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line

1 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

132 Scope of Work

The Study is to develop the improvement measures relating to the existing power facilities and operation and maintenance based on the analyses of current situation of the objective power stations in order to reduce the gap between the installed capacity (total rated capacity approximately 19500 MW) and available power supply capacity (approximately 14500 MW) which is regarded as the cause of tight of power balance and accounted to about 5000 MW (26 of total installed capacity) The Study is consisted of the following scope of work

(1) Preliminary Survey Stage

The following survey will be carried out in order to confirm the current situation of each power facilities in Java-Bali region

1) Collection of data and information of the following items through the investigation of the relevant organization in Indonesia and electric power facilities in Java-Bali Region a) Performance of power generation facilities b) Current situation of operation maintenance and inspection c) Organization and regulation for operation maintenance and inspection d) Needs for the technology transfer on operation maintenance and inspection e) 500 kV transmission line of Java-Bali system f) Plan of fuel supply

2) Review of the related reports and other relevant information

(2) Analysis and Examination Stage

Based on the result of the Preliminary Survey Stage current situation and management system would be analyzed for each power generation facilities and necessary countermeasures would be examined The following items will be considered in each power generation facilities

1) Improvement measures of power generation facilities including rehabilitation modification and re-powering

2) Improvement measures of management for operation maintenance and inspection

3) Economic and financial analysis of the above mentioned improvement

4) Grading the power facilities in need of improvement

(3) Technology Transfer Stage

Based on the impact and the needs for the technology transfer on operation maintenance

Final Report 1 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

and inspection with are confirmed in the Preliminary Survey Stage technology transfer on operation maintenance and inspection will be conducted at the time of maintenance and inspection

(4) Recommendation Stage

Considering the results of the above mentioned stages the following plan and recommendation will be submitted

1) Rehabilitation modification or re-powering plan of the power generation facilities

2) Management plan and general guidelines of operation maintenance and inspection

3) Recommendation to the organization and regulation for enhancing the capability of operation maintenance and inspection

4) Development plan of human resources for operation maintenance and inspection

1 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

2 RECOGNITION OF CURRENT SITUATION IN JAVA-BALI REGION 21 Confirmation of Power Development Plan 211 Power Development Plan

(1) Power Development Plan based on April 25 2005

The following tables show the power development plan from the year 2005 to 2015 for Java-Bali region and whole Indonesia as of April 2005

Table 21-1 Power Development Plan in Java-Bali Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Required Energy Residents GWh 28612 30074 31640 33315 35107 37016 38984 41015 43111 45277 47515 Public GWh 3851 4012 4179 4352 4534 4719 4868 5022 5181 5345 5514 Commercial GWh 13013 14526 16202 18060 20121 22478 25102 28024 31279 34906 38948 Industry GWh 35674 38484 41759 45439 49508 54205 59176 64515 70290 76557 83372Required Total GWh 81150 87095 93779 101166 109269 118418 128131 138576 149861 162085 175350Growth Rate - 73 77 79 80 84 82 82 81 82 8 System Loss (TampD) 114 110 104 103 103 102 101 101 100 100 100 Station Use 4 4 4 4 4 4 4 4 4 3 3Total Loss 15 15 14 14 14 14 14 14 14 13 13Load Factor 72 72 72 73 73 73 74 74 74 74 7Generation GWh 93665 100196 107274 115680 124861 135264 146261 158125 170889 183208 198201Peak Load MW 14851 15886 17008 18090 19525 21152 22563 24393 26362 28262 30575 Capacity at the beginning of the Year MW 18658 18658 21573 22298 23823 25773 28153 30296 32002 34363 36684Committed Project PLN Portion 0 730 60 945 720 0 0 0 0 0 0Muara Karang Repowering PLTGU 720Muara Tawar Extension PLTGU 225Priok Extension PLTGU 720Pemaron Extension PLTGU 50Cilegon PLTGU 730Cibuni PLTP 10 Private Portion 0 2040 290 580 0 0 0 0 0 0 0Tanjung Jati B 12 PLTU 1320Cilacap 1-2 PLTU 600Kamojang 4 PLTP 60Wayang Windu PLTP 110Dieng PLTP 60 60Darajat 3 PLTP 110Patuha PLTP 60 120Bedugul PLTP 10Anyer PLTGU 400New Project Plan Addition of New Generator 0 145 375 0 1230 2380 2330 1890 2360 2320 2720Muara Tawar Add On 2 PLTGU 145 225Kamojang 5 PLTP 60PLTU PLTU 500 660 1200 660 660 1320 1320PLTG PLTG 200 400 200 400PLTGU PLTGU 150 730 1460 730 730 1000 1000 1000Pump Storage Upper Cisokan PLTA 500 500 Total Additional Capacity MW 0 2915 725 1525 1950 2380 2330 1890 2360 2320 2720Total System Capacity MW 18658 21573 22298 23823 25773 28153 30483 32186 34362 36683 39404Reserve Margin 26 36 31 32 32 33 35 32 30 30 29Required Capacity MW 20048 21446 22961 24421 26359 28556 29332 31711 34271 36741 39748Shortage or Surplus MW 1390 -127 663 598 586 403 -1151 -475 -91 58 344

2

4

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG

RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

2 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 11: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- v - Draft Final Report

Table 31-17 Additional Proposals of Oil Reduction Plans Table 31-18 Final Proposals for Further Study Table 31-19 Main Features of Objective Hydropower Stations Table 31-20 Annuals Scheduled Outage and Forced Outage Hour (Saguling) Table 31-21 Analysis Scheduled Outage and Forced Outage Hour (Cirata) Table 31-22 Analysis Scheduled Outage and Forced Outage Hour (Soedirman) Table 31-23 Analysis Scheduled Outage and Forced Outage Hour (Sutami) Table 32-1 Forced Outage (Times) for Thermal Power Stations Table 32-2 Forced Outage (Hours) for Thermal Power Stations Table 32-3 Number of Forced Outages (Times) for PLTU Table 32-4 Number of Forced Outages (Times) for PLTG Table 32-5 Number of Forced Outages (Times) for PLTGU Table 32-6 Records of Scheduled MaintenanceInspection for 2003 2004 and 2005 by Unit

Type Table 32-7 PlansActual of Scheduled MaintenanceInspection for 2006 by Unit Type

(As of July 2006) Table 32-8 System for Maintenance Division at Power Station Table 32-9 Sharing of Role between Maintenance Department of the Power Station and

Maintenance Business Unit (UBHARUHAR) Table 32-10 Support System in UBHAR for Scheduled MaintenanceInspection Work Table 32-11(1)~(4) Summary of Forced Outage for 2003 2004 and 2005 at Each Unit Type Table 32-12(1)~(11) Summary of Forced Outage for 2003 2004 and 2005 at Each Power Station Table 32-13 Cause of Scheduled OutageForced Outage amp Outage Hour (Saguling) Table 32-14 Cause of Scheduled OutageForced Outage amp Outage Hour (Cirata) Table 32-15 Cause of Scheduled OutageForced Outage amp Outage Hour (Soedirman) Table 32-16 Cause of Scheduled OutageForced Outage amp Outage Hour (Sutami) Table 41-1 Final Plans for Further Study at 2nd Steering Committee Table 41-2 UBP Semarang Thermal Power Station and Power Units Table 41-3 UBP PerakGrati Thermal Power Station and Power Units Table 41-4 UBP Bali Power Units List Table 41-5 Outline of Proposed Plans Table 41-6 Results of Economic Analysis Table 41-7 Result of Financial Analysis Table 41-8 Measures toward Implementation Table 41-9 Economic Comparison amp Financial Analysis for Proposed Repowering Plans Table 41-10 Economic Analysis for Each Power Station Basis Table 41-11 Economic Analysis for Oil Reduction Plan Table 41-12 Financial Analysis for Each Power Station Basis Table 41-13 Financial Analysis for Oil Reduction Plan Table 41-14 (1) Scoping Results of the Repowering Plan in Tambak Lorok Thermal Power Station Table 41-14 (2) Scoping Results of the Repowering Plan in Grati Thermal Power Station

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - vi -

Table 41-14 (3) Scoping Results of the Repowering Plan in Gilimanuk Thermal Power Station Table 41-15 (1) Scoping Results of the Improvement Plan in UBP Semarang Table 41-15 (2) Scoping Results of the Improvement Plan in UBP PerakGrati Table 41-15 (3) Scoping Results of the Improvement Plan in UBP Bali Table 41-16 (1) Draft Outline of KA-ANDAL for Repowering Plan (Tambak Lorok Power

Station) Table 41-16 (2) Draft Outline of KA-ANDAL for Repowering Plan (Gilimanuk Power Station) Table 42-1 Proposed Rehabilitation Modification and Repowering Plans Table 51-1 Examples of Common Indicators Table 51-2 Key Performance Indicators for Reliability Management Table 52-1 Implementation Procedure of Scheduled Inspection Table 52-2 Sharing of Roles Table 52-3 Scheduled Inspection Shortening Method (Questionnaire Result Summary

Sheet) Table 54-1 Regulated Electricity related Accident Report Table 55-1 Items for Operation Management Table 55-2 Routine Inspection Items Table 61-1 Achievement of RLA and RehabilitationModification Table 61-2 Result of Questionnaire for Technology Transfer Table 61-3 Level of Understanding for Technology Transfer (713 714) Table 61-4 Result of Questionnaire for Technology Transfer Table 61-5 Level of Understanding for Technology Transfer (724) Table 7-1 Recommendations Table 7-2 Summary of Objective 16 Power Stations relating to Operation and Maintenance

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- vii - Draft Final Report

LIST OF FIGURES

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line Figure 21-1 Southerly 500 kV Transmission Line Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO Figure 26-1 (1) Organization Chart for Ministry Energy and Mineral Resources Figure 26-1 (2) Organization Chart for MEMR (Environmental Section) Figure 26-2 Involvement Procedure for Public Process of AMDAL Figure 26-3 Procedure for Implementation of Environmental Impact Assessment Figure 31-1 Distribution of Gas from Producer to UP Gresik Figure 32-1 Daily Load Curve in Java-Bali Regions (22 August 2006) Figure 32-2 Annual Operation Performance Relating Hours () for Objective Power Stations Figure 32-3 Inflow and Spilled Water at Saguling Reservoir Figure 32-4 Reservoir Operation in Saguling and Cirata Figure 32-4 Number of Service Interruption of Transformer per Unit Figure 33-5 Power Flow Drawing in 500 kV Java-Bali (2007) Figure 33-1 500kV Power Flow in the Maximum Load of Java 2004 (September 28th 1830) Figure 33-2 Service Interruptions by Source of Faults (times) Figure 33-3 Number of Service Interruptions of Transmission Line per 100 km Circuit Figure 41-1 Gilimanuk Power Station Layout Figure 41-2 UBP Semarang Three Power Stations Figure 41-3 Grati Power Station Layout Figure 41-4 UBP Bali Three Power Stations and Submarine Cables Figure 41-5(1) Topography of Power Plant in Surrounding (Tambak Lorok Power Station) Figure 41-5(2) Topography of power Plant in Surrounding (Grati Power Station) Figure 41-5(3) Topography of Power Plant in Surrounding (Gilimanuk Power Station) Figure 51-1 Comparison with NERC for EAF (Gresik power station) Figure 51-2 Flowchart of Maintenance Optimization Program at PJB Figure 51-3 Result of the Assessment (quoted from P17-Plant Assessment Gresik) Figure 51-4 Asset Management Performance Meter for Gresik Figure 52-1 Measurement Points Figure 52-2 Measurement Flow for Key Inspecting System Figure 52-3 Flow of Inspection Procedure Figure 54-1 Relationship between Power Utility Companies and METI in Japan Figure 61-1 Operating Time (Years) for PLTU

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

1 GENERAL 11 Background

Power demand in the Republic of Indonesia has steadily increased since the economic crisis in 1997 However the power supply system to the consumers still does not seem to work efficiently and seems to become the bottleneck toward the economic recovery in Indonesia For the above reason JICA carried out the study on the optimum power sources development in Java-Bali system (Power Sector Study for the Optimum Power Sources Development) from 2001 to 2002 In the Study JICA proposed recommendations on short-term countermeasures and mid-term plans from the viewpoint of stable power supply especially in Java-Bali system because the occurrence of shortage of reserve margin for power supply in Java-Bali system in 2004 had been anticipated And the immediate implementation of those recommendations was required Based on the above needs JICA conducted ldquoBasic Study for Project Formation Related to Mining and Manufacturing (The Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in the Republic Indonesia)rdquo in June 2003 In the Preliminary Study JICA mission studied on the current situation and identified the issues relating to the improvement measures for existing power generation facilities recommended in the Study in 2003 and formulated a specified project resulting from the confirmation of needs and consultation with relevant organizations in Indonesia The specific content was stipulated in the Minutes of Meeting agreed on July 3 2003 between JICA Ministry of Energy and Mineral Resources (MEMR) and PT PLN (Persero) Based on the Project Formation Study the Government of Republic of Indonesia officially requested the Government of Japan to implement the Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in July 23 2004 and the Government of Japan accepted the request and decided to conduct the Study in 2005 The tight power supply balance in Java-Bali region envisaged at the project formation study was fortunately avoided due to the effect by tariff hike and depressing power demand such as restricted connection to new customers which had been imposed up to July 2003 In year 2004 the actual demand under ran the projected demand

In year 2005 power demand has been increasing again and exceeded the past maximum peak load On the other hand any power stations except an expansion of thermal station (Muara Tawar Gas Turbine 858 MW) have not been reinforced up to now since the economic crisis For the above reason the phenomena of shortage for power supply and appreciate reserve margin were observed since April 2005 The envisaged tight power supply balance imposing

1 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

forced-demand control for large consumers has become the realistic issue In year 2006 new power stations are scheduled to start the commercial operation On the other hand due to the increase of power demand and decrease of exploitation of gas and oil in Indonesia it is worried about stable supply of fuels for power stations Further more due to the difficulty of land acquisition transmission expansion plan cannot keep the implementation schedule which means that tight supply balance might not be resolved even though new power stations are put into operation For the above reasons the study on the improvement measures for electric power generation facilities is expected

12 Purpose of the Study

The purpose of the Study is to develop the improvement measures for existing power stations to meet the power demand in short and middle terms in Java-Bali region based on the above background and to conduct the technology transfer relating the effective and appropriate operation and maintenance for the existing power stations

13 Study Area and Scope of Work 131 Study Area

The objective power stations are the following sixteen (16) power stations in Java-Bali regions and their locations are figure below

Final Report 1 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Owner Power Station Type Fuel Total Output (MW)

Suralaya Conventional Coal 400 MWtimes4 600 MW times 3 3400Conventional MFO 50 MWtimes2

CC GasHSD (130 MW times 3 + 200 MW) times 2 BL Tanjung Priok

Gas Turbine GasHSD 26 MW times 2 1430Conventional MFO 50 MW times 2 + 200 MW Tambak Lorok

CC GasHSD (10965 MW times 3 + 188 MW) times 2BL 1334CC GasHSD 10075 MW times 3 + 15958 MW Grati

Gas Turbine HSD 10075 MW times 3 764Perak Conventional MFO 50 MW times 2 100

Gas Turbine HSD 2135 + 2010 + 4200 times 2 Pesanggaran Diesel HSD 9 units Total 6568 MW 201

Gilimanuk Gas Turbine HSD 1338 MW 134Pemaron CC HSD 488 MW times 2 + 484 MW 150Saguling Hydro - 17518 MW times 4 70072

IP

Soedirman Hydro - 6030 times 3 1809Conventional GasMFO 100 MWtimes3 + 200 MW times 2 Muara Karang

CC GasHSD 10786 MWtimes3 + 18510 MW 1209Conventional GasMFO 100 MW times 2 + 200 MW times 2 Gresik

CC GasHSD (11245 MW times 3 + 18891 MW) times 3BL 2239Paiton Conventional Coal 400 MW times 2 800Muara Tawar CC GasHSD 140 MWtimes5 + 220 MW 920Cirata Hydro - 126 MW times 8 1008

PJB

Sutami Hydro - 35 MW times 3 105

Note HSD means High Speed Diesel Oil MFO means Marine Fuel Oil CC means Combined Cycle

(as of Nov2005)

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line

1 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

132 Scope of Work

The Study is to develop the improvement measures relating to the existing power facilities and operation and maintenance based on the analyses of current situation of the objective power stations in order to reduce the gap between the installed capacity (total rated capacity approximately 19500 MW) and available power supply capacity (approximately 14500 MW) which is regarded as the cause of tight of power balance and accounted to about 5000 MW (26 of total installed capacity) The Study is consisted of the following scope of work

(1) Preliminary Survey Stage

The following survey will be carried out in order to confirm the current situation of each power facilities in Java-Bali region

1) Collection of data and information of the following items through the investigation of the relevant organization in Indonesia and electric power facilities in Java-Bali Region a) Performance of power generation facilities b) Current situation of operation maintenance and inspection c) Organization and regulation for operation maintenance and inspection d) Needs for the technology transfer on operation maintenance and inspection e) 500 kV transmission line of Java-Bali system f) Plan of fuel supply

2) Review of the related reports and other relevant information

(2) Analysis and Examination Stage

Based on the result of the Preliminary Survey Stage current situation and management system would be analyzed for each power generation facilities and necessary countermeasures would be examined The following items will be considered in each power generation facilities

1) Improvement measures of power generation facilities including rehabilitation modification and re-powering

2) Improvement measures of management for operation maintenance and inspection

3) Economic and financial analysis of the above mentioned improvement

4) Grading the power facilities in need of improvement

(3) Technology Transfer Stage

Based on the impact and the needs for the technology transfer on operation maintenance

Final Report 1 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

and inspection with are confirmed in the Preliminary Survey Stage technology transfer on operation maintenance and inspection will be conducted at the time of maintenance and inspection

(4) Recommendation Stage

Considering the results of the above mentioned stages the following plan and recommendation will be submitted

1) Rehabilitation modification or re-powering plan of the power generation facilities

2) Management plan and general guidelines of operation maintenance and inspection

3) Recommendation to the organization and regulation for enhancing the capability of operation maintenance and inspection

4) Development plan of human resources for operation maintenance and inspection

1 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

2 RECOGNITION OF CURRENT SITUATION IN JAVA-BALI REGION 21 Confirmation of Power Development Plan 211 Power Development Plan

(1) Power Development Plan based on April 25 2005

The following tables show the power development plan from the year 2005 to 2015 for Java-Bali region and whole Indonesia as of April 2005

Table 21-1 Power Development Plan in Java-Bali Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Required Energy Residents GWh 28612 30074 31640 33315 35107 37016 38984 41015 43111 45277 47515 Public GWh 3851 4012 4179 4352 4534 4719 4868 5022 5181 5345 5514 Commercial GWh 13013 14526 16202 18060 20121 22478 25102 28024 31279 34906 38948 Industry GWh 35674 38484 41759 45439 49508 54205 59176 64515 70290 76557 83372Required Total GWh 81150 87095 93779 101166 109269 118418 128131 138576 149861 162085 175350Growth Rate - 73 77 79 80 84 82 82 81 82 8 System Loss (TampD) 114 110 104 103 103 102 101 101 100 100 100 Station Use 4 4 4 4 4 4 4 4 4 3 3Total Loss 15 15 14 14 14 14 14 14 14 13 13Load Factor 72 72 72 73 73 73 74 74 74 74 7Generation GWh 93665 100196 107274 115680 124861 135264 146261 158125 170889 183208 198201Peak Load MW 14851 15886 17008 18090 19525 21152 22563 24393 26362 28262 30575 Capacity at the beginning of the Year MW 18658 18658 21573 22298 23823 25773 28153 30296 32002 34363 36684Committed Project PLN Portion 0 730 60 945 720 0 0 0 0 0 0Muara Karang Repowering PLTGU 720Muara Tawar Extension PLTGU 225Priok Extension PLTGU 720Pemaron Extension PLTGU 50Cilegon PLTGU 730Cibuni PLTP 10 Private Portion 0 2040 290 580 0 0 0 0 0 0 0Tanjung Jati B 12 PLTU 1320Cilacap 1-2 PLTU 600Kamojang 4 PLTP 60Wayang Windu PLTP 110Dieng PLTP 60 60Darajat 3 PLTP 110Patuha PLTP 60 120Bedugul PLTP 10Anyer PLTGU 400New Project Plan Addition of New Generator 0 145 375 0 1230 2380 2330 1890 2360 2320 2720Muara Tawar Add On 2 PLTGU 145 225Kamojang 5 PLTP 60PLTU PLTU 500 660 1200 660 660 1320 1320PLTG PLTG 200 400 200 400PLTGU PLTGU 150 730 1460 730 730 1000 1000 1000Pump Storage Upper Cisokan PLTA 500 500 Total Additional Capacity MW 0 2915 725 1525 1950 2380 2330 1890 2360 2320 2720Total System Capacity MW 18658 21573 22298 23823 25773 28153 30483 32186 34362 36683 39404Reserve Margin 26 36 31 32 32 33 35 32 30 30 29Required Capacity MW 20048 21446 22961 24421 26359 28556 29332 31711 34271 36741 39748Shortage or Surplus MW 1390 -127 663 598 586 403 -1151 -475 -91 58 344

2

4

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG

RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

2 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 12: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Final Report - vi -

Table 41-14 (3) Scoping Results of the Repowering Plan in Gilimanuk Thermal Power Station Table 41-15 (1) Scoping Results of the Improvement Plan in UBP Semarang Table 41-15 (2) Scoping Results of the Improvement Plan in UBP PerakGrati Table 41-15 (3) Scoping Results of the Improvement Plan in UBP Bali Table 41-16 (1) Draft Outline of KA-ANDAL for Repowering Plan (Tambak Lorok Power

Station) Table 41-16 (2) Draft Outline of KA-ANDAL for Repowering Plan (Gilimanuk Power Station) Table 42-1 Proposed Rehabilitation Modification and Repowering Plans Table 51-1 Examples of Common Indicators Table 51-2 Key Performance Indicators for Reliability Management Table 52-1 Implementation Procedure of Scheduled Inspection Table 52-2 Sharing of Roles Table 52-3 Scheduled Inspection Shortening Method (Questionnaire Result Summary

Sheet) Table 54-1 Regulated Electricity related Accident Report Table 55-1 Items for Operation Management Table 55-2 Routine Inspection Items Table 61-1 Achievement of RLA and RehabilitationModification Table 61-2 Result of Questionnaire for Technology Transfer Table 61-3 Level of Understanding for Technology Transfer (713 714) Table 61-4 Result of Questionnaire for Technology Transfer Table 61-5 Level of Understanding for Technology Transfer (724) Table 7-1 Recommendations Table 7-2 Summary of Objective 16 Power Stations relating to Operation and Maintenance

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- vii - Draft Final Report

LIST OF FIGURES

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line Figure 21-1 Southerly 500 kV Transmission Line Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO Figure 26-1 (1) Organization Chart for Ministry Energy and Mineral Resources Figure 26-1 (2) Organization Chart for MEMR (Environmental Section) Figure 26-2 Involvement Procedure for Public Process of AMDAL Figure 26-3 Procedure for Implementation of Environmental Impact Assessment Figure 31-1 Distribution of Gas from Producer to UP Gresik Figure 32-1 Daily Load Curve in Java-Bali Regions (22 August 2006) Figure 32-2 Annual Operation Performance Relating Hours () for Objective Power Stations Figure 32-3 Inflow and Spilled Water at Saguling Reservoir Figure 32-4 Reservoir Operation in Saguling and Cirata Figure 32-4 Number of Service Interruption of Transformer per Unit Figure 33-5 Power Flow Drawing in 500 kV Java-Bali (2007) Figure 33-1 500kV Power Flow in the Maximum Load of Java 2004 (September 28th 1830) Figure 33-2 Service Interruptions by Source of Faults (times) Figure 33-3 Number of Service Interruptions of Transmission Line per 100 km Circuit Figure 41-1 Gilimanuk Power Station Layout Figure 41-2 UBP Semarang Three Power Stations Figure 41-3 Grati Power Station Layout Figure 41-4 UBP Bali Three Power Stations and Submarine Cables Figure 41-5(1) Topography of Power Plant in Surrounding (Tambak Lorok Power Station) Figure 41-5(2) Topography of power Plant in Surrounding (Grati Power Station) Figure 41-5(3) Topography of Power Plant in Surrounding (Gilimanuk Power Station) Figure 51-1 Comparison with NERC for EAF (Gresik power station) Figure 51-2 Flowchart of Maintenance Optimization Program at PJB Figure 51-3 Result of the Assessment (quoted from P17-Plant Assessment Gresik) Figure 51-4 Asset Management Performance Meter for Gresik Figure 52-1 Measurement Points Figure 52-2 Measurement Flow for Key Inspecting System Figure 52-3 Flow of Inspection Procedure Figure 54-1 Relationship between Power Utility Companies and METI in Japan Figure 61-1 Operating Time (Years) for PLTU

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

1 GENERAL 11 Background

Power demand in the Republic of Indonesia has steadily increased since the economic crisis in 1997 However the power supply system to the consumers still does not seem to work efficiently and seems to become the bottleneck toward the economic recovery in Indonesia For the above reason JICA carried out the study on the optimum power sources development in Java-Bali system (Power Sector Study for the Optimum Power Sources Development) from 2001 to 2002 In the Study JICA proposed recommendations on short-term countermeasures and mid-term plans from the viewpoint of stable power supply especially in Java-Bali system because the occurrence of shortage of reserve margin for power supply in Java-Bali system in 2004 had been anticipated And the immediate implementation of those recommendations was required Based on the above needs JICA conducted ldquoBasic Study for Project Formation Related to Mining and Manufacturing (The Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in the Republic Indonesia)rdquo in June 2003 In the Preliminary Study JICA mission studied on the current situation and identified the issues relating to the improvement measures for existing power generation facilities recommended in the Study in 2003 and formulated a specified project resulting from the confirmation of needs and consultation with relevant organizations in Indonesia The specific content was stipulated in the Minutes of Meeting agreed on July 3 2003 between JICA Ministry of Energy and Mineral Resources (MEMR) and PT PLN (Persero) Based on the Project Formation Study the Government of Republic of Indonesia officially requested the Government of Japan to implement the Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in July 23 2004 and the Government of Japan accepted the request and decided to conduct the Study in 2005 The tight power supply balance in Java-Bali region envisaged at the project formation study was fortunately avoided due to the effect by tariff hike and depressing power demand such as restricted connection to new customers which had been imposed up to July 2003 In year 2004 the actual demand under ran the projected demand

In year 2005 power demand has been increasing again and exceeded the past maximum peak load On the other hand any power stations except an expansion of thermal station (Muara Tawar Gas Turbine 858 MW) have not been reinforced up to now since the economic crisis For the above reason the phenomena of shortage for power supply and appreciate reserve margin were observed since April 2005 The envisaged tight power supply balance imposing

1 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

forced-demand control for large consumers has become the realistic issue In year 2006 new power stations are scheduled to start the commercial operation On the other hand due to the increase of power demand and decrease of exploitation of gas and oil in Indonesia it is worried about stable supply of fuels for power stations Further more due to the difficulty of land acquisition transmission expansion plan cannot keep the implementation schedule which means that tight supply balance might not be resolved even though new power stations are put into operation For the above reasons the study on the improvement measures for electric power generation facilities is expected

12 Purpose of the Study

The purpose of the Study is to develop the improvement measures for existing power stations to meet the power demand in short and middle terms in Java-Bali region based on the above background and to conduct the technology transfer relating the effective and appropriate operation and maintenance for the existing power stations

13 Study Area and Scope of Work 131 Study Area

The objective power stations are the following sixteen (16) power stations in Java-Bali regions and their locations are figure below

Final Report 1 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Owner Power Station Type Fuel Total Output (MW)

Suralaya Conventional Coal 400 MWtimes4 600 MW times 3 3400Conventional MFO 50 MWtimes2

CC GasHSD (130 MW times 3 + 200 MW) times 2 BL Tanjung Priok

Gas Turbine GasHSD 26 MW times 2 1430Conventional MFO 50 MW times 2 + 200 MW Tambak Lorok

CC GasHSD (10965 MW times 3 + 188 MW) times 2BL 1334CC GasHSD 10075 MW times 3 + 15958 MW Grati

Gas Turbine HSD 10075 MW times 3 764Perak Conventional MFO 50 MW times 2 100

Gas Turbine HSD 2135 + 2010 + 4200 times 2 Pesanggaran Diesel HSD 9 units Total 6568 MW 201

Gilimanuk Gas Turbine HSD 1338 MW 134Pemaron CC HSD 488 MW times 2 + 484 MW 150Saguling Hydro - 17518 MW times 4 70072

IP

Soedirman Hydro - 6030 times 3 1809Conventional GasMFO 100 MWtimes3 + 200 MW times 2 Muara Karang

CC GasHSD 10786 MWtimes3 + 18510 MW 1209Conventional GasMFO 100 MW times 2 + 200 MW times 2 Gresik

CC GasHSD (11245 MW times 3 + 18891 MW) times 3BL 2239Paiton Conventional Coal 400 MW times 2 800Muara Tawar CC GasHSD 140 MWtimes5 + 220 MW 920Cirata Hydro - 126 MW times 8 1008

PJB

Sutami Hydro - 35 MW times 3 105

Note HSD means High Speed Diesel Oil MFO means Marine Fuel Oil CC means Combined Cycle

(as of Nov2005)

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line

1 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

132 Scope of Work

The Study is to develop the improvement measures relating to the existing power facilities and operation and maintenance based on the analyses of current situation of the objective power stations in order to reduce the gap between the installed capacity (total rated capacity approximately 19500 MW) and available power supply capacity (approximately 14500 MW) which is regarded as the cause of tight of power balance and accounted to about 5000 MW (26 of total installed capacity) The Study is consisted of the following scope of work

(1) Preliminary Survey Stage

The following survey will be carried out in order to confirm the current situation of each power facilities in Java-Bali region

1) Collection of data and information of the following items through the investigation of the relevant organization in Indonesia and electric power facilities in Java-Bali Region a) Performance of power generation facilities b) Current situation of operation maintenance and inspection c) Organization and regulation for operation maintenance and inspection d) Needs for the technology transfer on operation maintenance and inspection e) 500 kV transmission line of Java-Bali system f) Plan of fuel supply

2) Review of the related reports and other relevant information

(2) Analysis and Examination Stage

Based on the result of the Preliminary Survey Stage current situation and management system would be analyzed for each power generation facilities and necessary countermeasures would be examined The following items will be considered in each power generation facilities

1) Improvement measures of power generation facilities including rehabilitation modification and re-powering

2) Improvement measures of management for operation maintenance and inspection

3) Economic and financial analysis of the above mentioned improvement

4) Grading the power facilities in need of improvement

(3) Technology Transfer Stage

Based on the impact and the needs for the technology transfer on operation maintenance

Final Report 1 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

and inspection with are confirmed in the Preliminary Survey Stage technology transfer on operation maintenance and inspection will be conducted at the time of maintenance and inspection

(4) Recommendation Stage

Considering the results of the above mentioned stages the following plan and recommendation will be submitted

1) Rehabilitation modification or re-powering plan of the power generation facilities

2) Management plan and general guidelines of operation maintenance and inspection

3) Recommendation to the organization and regulation for enhancing the capability of operation maintenance and inspection

4) Development plan of human resources for operation maintenance and inspection

1 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

2 RECOGNITION OF CURRENT SITUATION IN JAVA-BALI REGION 21 Confirmation of Power Development Plan 211 Power Development Plan

(1) Power Development Plan based on April 25 2005

The following tables show the power development plan from the year 2005 to 2015 for Java-Bali region and whole Indonesia as of April 2005

Table 21-1 Power Development Plan in Java-Bali Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Required Energy Residents GWh 28612 30074 31640 33315 35107 37016 38984 41015 43111 45277 47515 Public GWh 3851 4012 4179 4352 4534 4719 4868 5022 5181 5345 5514 Commercial GWh 13013 14526 16202 18060 20121 22478 25102 28024 31279 34906 38948 Industry GWh 35674 38484 41759 45439 49508 54205 59176 64515 70290 76557 83372Required Total GWh 81150 87095 93779 101166 109269 118418 128131 138576 149861 162085 175350Growth Rate - 73 77 79 80 84 82 82 81 82 8 System Loss (TampD) 114 110 104 103 103 102 101 101 100 100 100 Station Use 4 4 4 4 4 4 4 4 4 3 3Total Loss 15 15 14 14 14 14 14 14 14 13 13Load Factor 72 72 72 73 73 73 74 74 74 74 7Generation GWh 93665 100196 107274 115680 124861 135264 146261 158125 170889 183208 198201Peak Load MW 14851 15886 17008 18090 19525 21152 22563 24393 26362 28262 30575 Capacity at the beginning of the Year MW 18658 18658 21573 22298 23823 25773 28153 30296 32002 34363 36684Committed Project PLN Portion 0 730 60 945 720 0 0 0 0 0 0Muara Karang Repowering PLTGU 720Muara Tawar Extension PLTGU 225Priok Extension PLTGU 720Pemaron Extension PLTGU 50Cilegon PLTGU 730Cibuni PLTP 10 Private Portion 0 2040 290 580 0 0 0 0 0 0 0Tanjung Jati B 12 PLTU 1320Cilacap 1-2 PLTU 600Kamojang 4 PLTP 60Wayang Windu PLTP 110Dieng PLTP 60 60Darajat 3 PLTP 110Patuha PLTP 60 120Bedugul PLTP 10Anyer PLTGU 400New Project Plan Addition of New Generator 0 145 375 0 1230 2380 2330 1890 2360 2320 2720Muara Tawar Add On 2 PLTGU 145 225Kamojang 5 PLTP 60PLTU PLTU 500 660 1200 660 660 1320 1320PLTG PLTG 200 400 200 400PLTGU PLTGU 150 730 1460 730 730 1000 1000 1000Pump Storage Upper Cisokan PLTA 500 500 Total Additional Capacity MW 0 2915 725 1525 1950 2380 2330 1890 2360 2320 2720Total System Capacity MW 18658 21573 22298 23823 25773 28153 30483 32186 34362 36683 39404Reserve Margin 26 36 31 32 32 33 35 32 30 30 29Required Capacity MW 20048 21446 22961 24421 26359 28556 29332 31711 34271 36741 39748Shortage or Surplus MW 1390 -127 663 598 586 403 -1151 -475 -91 58 344

2

4

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG

RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

2 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 13: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

- vii - Draft Final Report

LIST OF FIGURES

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line Figure 21-1 Southerly 500 kV Transmission Line Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO Figure 26-1 (1) Organization Chart for Ministry Energy and Mineral Resources Figure 26-1 (2) Organization Chart for MEMR (Environmental Section) Figure 26-2 Involvement Procedure for Public Process of AMDAL Figure 26-3 Procedure for Implementation of Environmental Impact Assessment Figure 31-1 Distribution of Gas from Producer to UP Gresik Figure 32-1 Daily Load Curve in Java-Bali Regions (22 August 2006) Figure 32-2 Annual Operation Performance Relating Hours () for Objective Power Stations Figure 32-3 Inflow and Spilled Water at Saguling Reservoir Figure 32-4 Reservoir Operation in Saguling and Cirata Figure 32-4 Number of Service Interruption of Transformer per Unit Figure 33-5 Power Flow Drawing in 500 kV Java-Bali (2007) Figure 33-1 500kV Power Flow in the Maximum Load of Java 2004 (September 28th 1830) Figure 33-2 Service Interruptions by Source of Faults (times) Figure 33-3 Number of Service Interruptions of Transmission Line per 100 km Circuit Figure 41-1 Gilimanuk Power Station Layout Figure 41-2 UBP Semarang Three Power Stations Figure 41-3 Grati Power Station Layout Figure 41-4 UBP Bali Three Power Stations and Submarine Cables Figure 41-5(1) Topography of Power Plant in Surrounding (Tambak Lorok Power Station) Figure 41-5(2) Topography of power Plant in Surrounding (Grati Power Station) Figure 41-5(3) Topography of Power Plant in Surrounding (Gilimanuk Power Station) Figure 51-1 Comparison with NERC for EAF (Gresik power station) Figure 51-2 Flowchart of Maintenance Optimization Program at PJB Figure 51-3 Result of the Assessment (quoted from P17-Plant Assessment Gresik) Figure 51-4 Asset Management Performance Meter for Gresik Figure 52-1 Measurement Points Figure 52-2 Measurement Flow for Key Inspecting System Figure 52-3 Flow of Inspection Procedure Figure 54-1 Relationship between Power Utility Companies and METI in Japan Figure 61-1 Operating Time (Years) for PLTU

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

1 GENERAL 11 Background

Power demand in the Republic of Indonesia has steadily increased since the economic crisis in 1997 However the power supply system to the consumers still does not seem to work efficiently and seems to become the bottleneck toward the economic recovery in Indonesia For the above reason JICA carried out the study on the optimum power sources development in Java-Bali system (Power Sector Study for the Optimum Power Sources Development) from 2001 to 2002 In the Study JICA proposed recommendations on short-term countermeasures and mid-term plans from the viewpoint of stable power supply especially in Java-Bali system because the occurrence of shortage of reserve margin for power supply in Java-Bali system in 2004 had been anticipated And the immediate implementation of those recommendations was required Based on the above needs JICA conducted ldquoBasic Study for Project Formation Related to Mining and Manufacturing (The Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in the Republic Indonesia)rdquo in June 2003 In the Preliminary Study JICA mission studied on the current situation and identified the issues relating to the improvement measures for existing power generation facilities recommended in the Study in 2003 and formulated a specified project resulting from the confirmation of needs and consultation with relevant organizations in Indonesia The specific content was stipulated in the Minutes of Meeting agreed on July 3 2003 between JICA Ministry of Energy and Mineral Resources (MEMR) and PT PLN (Persero) Based on the Project Formation Study the Government of Republic of Indonesia officially requested the Government of Japan to implement the Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in July 23 2004 and the Government of Japan accepted the request and decided to conduct the Study in 2005 The tight power supply balance in Java-Bali region envisaged at the project formation study was fortunately avoided due to the effect by tariff hike and depressing power demand such as restricted connection to new customers which had been imposed up to July 2003 In year 2004 the actual demand under ran the projected demand

In year 2005 power demand has been increasing again and exceeded the past maximum peak load On the other hand any power stations except an expansion of thermal station (Muara Tawar Gas Turbine 858 MW) have not been reinforced up to now since the economic crisis For the above reason the phenomena of shortage for power supply and appreciate reserve margin were observed since April 2005 The envisaged tight power supply balance imposing

1 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

forced-demand control for large consumers has become the realistic issue In year 2006 new power stations are scheduled to start the commercial operation On the other hand due to the increase of power demand and decrease of exploitation of gas and oil in Indonesia it is worried about stable supply of fuels for power stations Further more due to the difficulty of land acquisition transmission expansion plan cannot keep the implementation schedule which means that tight supply balance might not be resolved even though new power stations are put into operation For the above reasons the study on the improvement measures for electric power generation facilities is expected

12 Purpose of the Study

The purpose of the Study is to develop the improvement measures for existing power stations to meet the power demand in short and middle terms in Java-Bali region based on the above background and to conduct the technology transfer relating the effective and appropriate operation and maintenance for the existing power stations

13 Study Area and Scope of Work 131 Study Area

The objective power stations are the following sixteen (16) power stations in Java-Bali regions and their locations are figure below

Final Report 1 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Owner Power Station Type Fuel Total Output (MW)

Suralaya Conventional Coal 400 MWtimes4 600 MW times 3 3400Conventional MFO 50 MWtimes2

CC GasHSD (130 MW times 3 + 200 MW) times 2 BL Tanjung Priok

Gas Turbine GasHSD 26 MW times 2 1430Conventional MFO 50 MW times 2 + 200 MW Tambak Lorok

CC GasHSD (10965 MW times 3 + 188 MW) times 2BL 1334CC GasHSD 10075 MW times 3 + 15958 MW Grati

Gas Turbine HSD 10075 MW times 3 764Perak Conventional MFO 50 MW times 2 100

Gas Turbine HSD 2135 + 2010 + 4200 times 2 Pesanggaran Diesel HSD 9 units Total 6568 MW 201

Gilimanuk Gas Turbine HSD 1338 MW 134Pemaron CC HSD 488 MW times 2 + 484 MW 150Saguling Hydro - 17518 MW times 4 70072

IP

Soedirman Hydro - 6030 times 3 1809Conventional GasMFO 100 MWtimes3 + 200 MW times 2 Muara Karang

CC GasHSD 10786 MWtimes3 + 18510 MW 1209Conventional GasMFO 100 MW times 2 + 200 MW times 2 Gresik

CC GasHSD (11245 MW times 3 + 18891 MW) times 3BL 2239Paiton Conventional Coal 400 MW times 2 800Muara Tawar CC GasHSD 140 MWtimes5 + 220 MW 920Cirata Hydro - 126 MW times 8 1008

PJB

Sutami Hydro - 35 MW times 3 105

Note HSD means High Speed Diesel Oil MFO means Marine Fuel Oil CC means Combined Cycle

(as of Nov2005)

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line

1 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

132 Scope of Work

The Study is to develop the improvement measures relating to the existing power facilities and operation and maintenance based on the analyses of current situation of the objective power stations in order to reduce the gap between the installed capacity (total rated capacity approximately 19500 MW) and available power supply capacity (approximately 14500 MW) which is regarded as the cause of tight of power balance and accounted to about 5000 MW (26 of total installed capacity) The Study is consisted of the following scope of work

(1) Preliminary Survey Stage

The following survey will be carried out in order to confirm the current situation of each power facilities in Java-Bali region

1) Collection of data and information of the following items through the investigation of the relevant organization in Indonesia and electric power facilities in Java-Bali Region a) Performance of power generation facilities b) Current situation of operation maintenance and inspection c) Organization and regulation for operation maintenance and inspection d) Needs for the technology transfer on operation maintenance and inspection e) 500 kV transmission line of Java-Bali system f) Plan of fuel supply

2) Review of the related reports and other relevant information

(2) Analysis and Examination Stage

Based on the result of the Preliminary Survey Stage current situation and management system would be analyzed for each power generation facilities and necessary countermeasures would be examined The following items will be considered in each power generation facilities

1) Improvement measures of power generation facilities including rehabilitation modification and re-powering

2) Improvement measures of management for operation maintenance and inspection

3) Economic and financial analysis of the above mentioned improvement

4) Grading the power facilities in need of improvement

(3) Technology Transfer Stage

Based on the impact and the needs for the technology transfer on operation maintenance

Final Report 1 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

and inspection with are confirmed in the Preliminary Survey Stage technology transfer on operation maintenance and inspection will be conducted at the time of maintenance and inspection

(4) Recommendation Stage

Considering the results of the above mentioned stages the following plan and recommendation will be submitted

1) Rehabilitation modification or re-powering plan of the power generation facilities

2) Management plan and general guidelines of operation maintenance and inspection

3) Recommendation to the organization and regulation for enhancing the capability of operation maintenance and inspection

4) Development plan of human resources for operation maintenance and inspection

1 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

2 RECOGNITION OF CURRENT SITUATION IN JAVA-BALI REGION 21 Confirmation of Power Development Plan 211 Power Development Plan

(1) Power Development Plan based on April 25 2005

The following tables show the power development plan from the year 2005 to 2015 for Java-Bali region and whole Indonesia as of April 2005

Table 21-1 Power Development Plan in Java-Bali Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Required Energy Residents GWh 28612 30074 31640 33315 35107 37016 38984 41015 43111 45277 47515 Public GWh 3851 4012 4179 4352 4534 4719 4868 5022 5181 5345 5514 Commercial GWh 13013 14526 16202 18060 20121 22478 25102 28024 31279 34906 38948 Industry GWh 35674 38484 41759 45439 49508 54205 59176 64515 70290 76557 83372Required Total GWh 81150 87095 93779 101166 109269 118418 128131 138576 149861 162085 175350Growth Rate - 73 77 79 80 84 82 82 81 82 8 System Loss (TampD) 114 110 104 103 103 102 101 101 100 100 100 Station Use 4 4 4 4 4 4 4 4 4 3 3Total Loss 15 15 14 14 14 14 14 14 14 13 13Load Factor 72 72 72 73 73 73 74 74 74 74 7Generation GWh 93665 100196 107274 115680 124861 135264 146261 158125 170889 183208 198201Peak Load MW 14851 15886 17008 18090 19525 21152 22563 24393 26362 28262 30575 Capacity at the beginning of the Year MW 18658 18658 21573 22298 23823 25773 28153 30296 32002 34363 36684Committed Project PLN Portion 0 730 60 945 720 0 0 0 0 0 0Muara Karang Repowering PLTGU 720Muara Tawar Extension PLTGU 225Priok Extension PLTGU 720Pemaron Extension PLTGU 50Cilegon PLTGU 730Cibuni PLTP 10 Private Portion 0 2040 290 580 0 0 0 0 0 0 0Tanjung Jati B 12 PLTU 1320Cilacap 1-2 PLTU 600Kamojang 4 PLTP 60Wayang Windu PLTP 110Dieng PLTP 60 60Darajat 3 PLTP 110Patuha PLTP 60 120Bedugul PLTP 10Anyer PLTGU 400New Project Plan Addition of New Generator 0 145 375 0 1230 2380 2330 1890 2360 2320 2720Muara Tawar Add On 2 PLTGU 145 225Kamojang 5 PLTP 60PLTU PLTU 500 660 1200 660 660 1320 1320PLTG PLTG 200 400 200 400PLTGU PLTGU 150 730 1460 730 730 1000 1000 1000Pump Storage Upper Cisokan PLTA 500 500 Total Additional Capacity MW 0 2915 725 1525 1950 2380 2330 1890 2360 2320 2720Total System Capacity MW 18658 21573 22298 23823 25773 28153 30483 32186 34362 36683 39404Reserve Margin 26 36 31 32 32 33 35 32 30 30 29Required Capacity MW 20048 21446 22961 24421 26359 28556 29332 31711 34271 36741 39748Shortage or Surplus MW 1390 -127 663 598 586 403 -1151 -475 -91 58 344

2

4

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG

RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

2 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 14: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

1 GENERAL 11 Background

Power demand in the Republic of Indonesia has steadily increased since the economic crisis in 1997 However the power supply system to the consumers still does not seem to work efficiently and seems to become the bottleneck toward the economic recovery in Indonesia For the above reason JICA carried out the study on the optimum power sources development in Java-Bali system (Power Sector Study for the Optimum Power Sources Development) from 2001 to 2002 In the Study JICA proposed recommendations on short-term countermeasures and mid-term plans from the viewpoint of stable power supply especially in Java-Bali system because the occurrence of shortage of reserve margin for power supply in Java-Bali system in 2004 had been anticipated And the immediate implementation of those recommendations was required Based on the above needs JICA conducted ldquoBasic Study for Project Formation Related to Mining and Manufacturing (The Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in the Republic Indonesia)rdquo in June 2003 In the Preliminary Study JICA mission studied on the current situation and identified the issues relating to the improvement measures for existing power generation facilities recommended in the Study in 2003 and formulated a specified project resulting from the confirmation of needs and consultation with relevant organizations in Indonesia The specific content was stipulated in the Minutes of Meeting agreed on July 3 2003 between JICA Ministry of Energy and Mineral Resources (MEMR) and PT PLN (Persero) Based on the Project Formation Study the Government of Republic of Indonesia officially requested the Government of Japan to implement the Study on the Improvement Utilization for Electric Facilities in Java-Bali Region in July 23 2004 and the Government of Japan accepted the request and decided to conduct the Study in 2005 The tight power supply balance in Java-Bali region envisaged at the project formation study was fortunately avoided due to the effect by tariff hike and depressing power demand such as restricted connection to new customers which had been imposed up to July 2003 In year 2004 the actual demand under ran the projected demand

In year 2005 power demand has been increasing again and exceeded the past maximum peak load On the other hand any power stations except an expansion of thermal station (Muara Tawar Gas Turbine 858 MW) have not been reinforced up to now since the economic crisis For the above reason the phenomena of shortage for power supply and appreciate reserve margin were observed since April 2005 The envisaged tight power supply balance imposing

1 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

forced-demand control for large consumers has become the realistic issue In year 2006 new power stations are scheduled to start the commercial operation On the other hand due to the increase of power demand and decrease of exploitation of gas and oil in Indonesia it is worried about stable supply of fuels for power stations Further more due to the difficulty of land acquisition transmission expansion plan cannot keep the implementation schedule which means that tight supply balance might not be resolved even though new power stations are put into operation For the above reasons the study on the improvement measures for electric power generation facilities is expected

12 Purpose of the Study

The purpose of the Study is to develop the improvement measures for existing power stations to meet the power demand in short and middle terms in Java-Bali region based on the above background and to conduct the technology transfer relating the effective and appropriate operation and maintenance for the existing power stations

13 Study Area and Scope of Work 131 Study Area

The objective power stations are the following sixteen (16) power stations in Java-Bali regions and their locations are figure below

Final Report 1 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Owner Power Station Type Fuel Total Output (MW)

Suralaya Conventional Coal 400 MWtimes4 600 MW times 3 3400Conventional MFO 50 MWtimes2

CC GasHSD (130 MW times 3 + 200 MW) times 2 BL Tanjung Priok

Gas Turbine GasHSD 26 MW times 2 1430Conventional MFO 50 MW times 2 + 200 MW Tambak Lorok

CC GasHSD (10965 MW times 3 + 188 MW) times 2BL 1334CC GasHSD 10075 MW times 3 + 15958 MW Grati

Gas Turbine HSD 10075 MW times 3 764Perak Conventional MFO 50 MW times 2 100

Gas Turbine HSD 2135 + 2010 + 4200 times 2 Pesanggaran Diesel HSD 9 units Total 6568 MW 201

Gilimanuk Gas Turbine HSD 1338 MW 134Pemaron CC HSD 488 MW times 2 + 484 MW 150Saguling Hydro - 17518 MW times 4 70072

IP

Soedirman Hydro - 6030 times 3 1809Conventional GasMFO 100 MWtimes3 + 200 MW times 2 Muara Karang

CC GasHSD 10786 MWtimes3 + 18510 MW 1209Conventional GasMFO 100 MW times 2 + 200 MW times 2 Gresik

CC GasHSD (11245 MW times 3 + 18891 MW) times 3BL 2239Paiton Conventional Coal 400 MW times 2 800Muara Tawar CC GasHSD 140 MWtimes5 + 220 MW 920Cirata Hydro - 126 MW times 8 1008

PJB

Sutami Hydro - 35 MW times 3 105

Note HSD means High Speed Diesel Oil MFO means Marine Fuel Oil CC means Combined Cycle

(as of Nov2005)

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line

1 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

132 Scope of Work

The Study is to develop the improvement measures relating to the existing power facilities and operation and maintenance based on the analyses of current situation of the objective power stations in order to reduce the gap between the installed capacity (total rated capacity approximately 19500 MW) and available power supply capacity (approximately 14500 MW) which is regarded as the cause of tight of power balance and accounted to about 5000 MW (26 of total installed capacity) The Study is consisted of the following scope of work

(1) Preliminary Survey Stage

The following survey will be carried out in order to confirm the current situation of each power facilities in Java-Bali region

1) Collection of data and information of the following items through the investigation of the relevant organization in Indonesia and electric power facilities in Java-Bali Region a) Performance of power generation facilities b) Current situation of operation maintenance and inspection c) Organization and regulation for operation maintenance and inspection d) Needs for the technology transfer on operation maintenance and inspection e) 500 kV transmission line of Java-Bali system f) Plan of fuel supply

2) Review of the related reports and other relevant information

(2) Analysis and Examination Stage

Based on the result of the Preliminary Survey Stage current situation and management system would be analyzed for each power generation facilities and necessary countermeasures would be examined The following items will be considered in each power generation facilities

1) Improvement measures of power generation facilities including rehabilitation modification and re-powering

2) Improvement measures of management for operation maintenance and inspection

3) Economic and financial analysis of the above mentioned improvement

4) Grading the power facilities in need of improvement

(3) Technology Transfer Stage

Based on the impact and the needs for the technology transfer on operation maintenance

Final Report 1 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

and inspection with are confirmed in the Preliminary Survey Stage technology transfer on operation maintenance and inspection will be conducted at the time of maintenance and inspection

(4) Recommendation Stage

Considering the results of the above mentioned stages the following plan and recommendation will be submitted

1) Rehabilitation modification or re-powering plan of the power generation facilities

2) Management plan and general guidelines of operation maintenance and inspection

3) Recommendation to the organization and regulation for enhancing the capability of operation maintenance and inspection

4) Development plan of human resources for operation maintenance and inspection

1 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

2 RECOGNITION OF CURRENT SITUATION IN JAVA-BALI REGION 21 Confirmation of Power Development Plan 211 Power Development Plan

(1) Power Development Plan based on April 25 2005

The following tables show the power development plan from the year 2005 to 2015 for Java-Bali region and whole Indonesia as of April 2005

Table 21-1 Power Development Plan in Java-Bali Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Required Energy Residents GWh 28612 30074 31640 33315 35107 37016 38984 41015 43111 45277 47515 Public GWh 3851 4012 4179 4352 4534 4719 4868 5022 5181 5345 5514 Commercial GWh 13013 14526 16202 18060 20121 22478 25102 28024 31279 34906 38948 Industry GWh 35674 38484 41759 45439 49508 54205 59176 64515 70290 76557 83372Required Total GWh 81150 87095 93779 101166 109269 118418 128131 138576 149861 162085 175350Growth Rate - 73 77 79 80 84 82 82 81 82 8 System Loss (TampD) 114 110 104 103 103 102 101 101 100 100 100 Station Use 4 4 4 4 4 4 4 4 4 3 3Total Loss 15 15 14 14 14 14 14 14 14 13 13Load Factor 72 72 72 73 73 73 74 74 74 74 7Generation GWh 93665 100196 107274 115680 124861 135264 146261 158125 170889 183208 198201Peak Load MW 14851 15886 17008 18090 19525 21152 22563 24393 26362 28262 30575 Capacity at the beginning of the Year MW 18658 18658 21573 22298 23823 25773 28153 30296 32002 34363 36684Committed Project PLN Portion 0 730 60 945 720 0 0 0 0 0 0Muara Karang Repowering PLTGU 720Muara Tawar Extension PLTGU 225Priok Extension PLTGU 720Pemaron Extension PLTGU 50Cilegon PLTGU 730Cibuni PLTP 10 Private Portion 0 2040 290 580 0 0 0 0 0 0 0Tanjung Jati B 12 PLTU 1320Cilacap 1-2 PLTU 600Kamojang 4 PLTP 60Wayang Windu PLTP 110Dieng PLTP 60 60Darajat 3 PLTP 110Patuha PLTP 60 120Bedugul PLTP 10Anyer PLTGU 400New Project Plan Addition of New Generator 0 145 375 0 1230 2380 2330 1890 2360 2320 2720Muara Tawar Add On 2 PLTGU 145 225Kamojang 5 PLTP 60PLTU PLTU 500 660 1200 660 660 1320 1320PLTG PLTG 200 400 200 400PLTGU PLTGU 150 730 1460 730 730 1000 1000 1000Pump Storage Upper Cisokan PLTA 500 500 Total Additional Capacity MW 0 2915 725 1525 1950 2380 2330 1890 2360 2320 2720Total System Capacity MW 18658 21573 22298 23823 25773 28153 30483 32186 34362 36683 39404Reserve Margin 26 36 31 32 32 33 35 32 30 30 29Required Capacity MW 20048 21446 22961 24421 26359 28556 29332 31711 34271 36741 39748Shortage or Surplus MW 1390 -127 663 598 586 403 -1151 -475 -91 58 344

2

4

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG

RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

2 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 15: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

forced-demand control for large consumers has become the realistic issue In year 2006 new power stations are scheduled to start the commercial operation On the other hand due to the increase of power demand and decrease of exploitation of gas and oil in Indonesia it is worried about stable supply of fuels for power stations Further more due to the difficulty of land acquisition transmission expansion plan cannot keep the implementation schedule which means that tight supply balance might not be resolved even though new power stations are put into operation For the above reasons the study on the improvement measures for electric power generation facilities is expected

12 Purpose of the Study

The purpose of the Study is to develop the improvement measures for existing power stations to meet the power demand in short and middle terms in Java-Bali region based on the above background and to conduct the technology transfer relating the effective and appropriate operation and maintenance for the existing power stations

13 Study Area and Scope of Work 131 Study Area

The objective power stations are the following sixteen (16) power stations in Java-Bali regions and their locations are figure below

Final Report 1 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Owner Power Station Type Fuel Total Output (MW)

Suralaya Conventional Coal 400 MWtimes4 600 MW times 3 3400Conventional MFO 50 MWtimes2

CC GasHSD (130 MW times 3 + 200 MW) times 2 BL Tanjung Priok

Gas Turbine GasHSD 26 MW times 2 1430Conventional MFO 50 MW times 2 + 200 MW Tambak Lorok

CC GasHSD (10965 MW times 3 + 188 MW) times 2BL 1334CC GasHSD 10075 MW times 3 + 15958 MW Grati

Gas Turbine HSD 10075 MW times 3 764Perak Conventional MFO 50 MW times 2 100

Gas Turbine HSD 2135 + 2010 + 4200 times 2 Pesanggaran Diesel HSD 9 units Total 6568 MW 201

Gilimanuk Gas Turbine HSD 1338 MW 134Pemaron CC HSD 488 MW times 2 + 484 MW 150Saguling Hydro - 17518 MW times 4 70072

IP

Soedirman Hydro - 6030 times 3 1809Conventional GasMFO 100 MWtimes3 + 200 MW times 2 Muara Karang

CC GasHSD 10786 MWtimes3 + 18510 MW 1209Conventional GasMFO 100 MW times 2 + 200 MW times 2 Gresik

CC GasHSD (11245 MW times 3 + 18891 MW) times 3BL 2239Paiton Conventional Coal 400 MW times 2 800Muara Tawar CC GasHSD 140 MWtimes5 + 220 MW 920Cirata Hydro - 126 MW times 8 1008

PJB

Sutami Hydro - 35 MW times 3 105

Note HSD means High Speed Diesel Oil MFO means Marine Fuel Oil CC means Combined Cycle

(as of Nov2005)

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line

1 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

132 Scope of Work

The Study is to develop the improvement measures relating to the existing power facilities and operation and maintenance based on the analyses of current situation of the objective power stations in order to reduce the gap between the installed capacity (total rated capacity approximately 19500 MW) and available power supply capacity (approximately 14500 MW) which is regarded as the cause of tight of power balance and accounted to about 5000 MW (26 of total installed capacity) The Study is consisted of the following scope of work

(1) Preliminary Survey Stage

The following survey will be carried out in order to confirm the current situation of each power facilities in Java-Bali region

1) Collection of data and information of the following items through the investigation of the relevant organization in Indonesia and electric power facilities in Java-Bali Region a) Performance of power generation facilities b) Current situation of operation maintenance and inspection c) Organization and regulation for operation maintenance and inspection d) Needs for the technology transfer on operation maintenance and inspection e) 500 kV transmission line of Java-Bali system f) Plan of fuel supply

2) Review of the related reports and other relevant information

(2) Analysis and Examination Stage

Based on the result of the Preliminary Survey Stage current situation and management system would be analyzed for each power generation facilities and necessary countermeasures would be examined The following items will be considered in each power generation facilities

1) Improvement measures of power generation facilities including rehabilitation modification and re-powering

2) Improvement measures of management for operation maintenance and inspection

3) Economic and financial analysis of the above mentioned improvement

4) Grading the power facilities in need of improvement

(3) Technology Transfer Stage

Based on the impact and the needs for the technology transfer on operation maintenance

Final Report 1 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

and inspection with are confirmed in the Preliminary Survey Stage technology transfer on operation maintenance and inspection will be conducted at the time of maintenance and inspection

(4) Recommendation Stage

Considering the results of the above mentioned stages the following plan and recommendation will be submitted

1) Rehabilitation modification or re-powering plan of the power generation facilities

2) Management plan and general guidelines of operation maintenance and inspection

3) Recommendation to the organization and regulation for enhancing the capability of operation maintenance and inspection

4) Development plan of human resources for operation maintenance and inspection

1 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

2 RECOGNITION OF CURRENT SITUATION IN JAVA-BALI REGION 21 Confirmation of Power Development Plan 211 Power Development Plan

(1) Power Development Plan based on April 25 2005

The following tables show the power development plan from the year 2005 to 2015 for Java-Bali region and whole Indonesia as of April 2005

Table 21-1 Power Development Plan in Java-Bali Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Required Energy Residents GWh 28612 30074 31640 33315 35107 37016 38984 41015 43111 45277 47515 Public GWh 3851 4012 4179 4352 4534 4719 4868 5022 5181 5345 5514 Commercial GWh 13013 14526 16202 18060 20121 22478 25102 28024 31279 34906 38948 Industry GWh 35674 38484 41759 45439 49508 54205 59176 64515 70290 76557 83372Required Total GWh 81150 87095 93779 101166 109269 118418 128131 138576 149861 162085 175350Growth Rate - 73 77 79 80 84 82 82 81 82 8 System Loss (TampD) 114 110 104 103 103 102 101 101 100 100 100 Station Use 4 4 4 4 4 4 4 4 4 3 3Total Loss 15 15 14 14 14 14 14 14 14 13 13Load Factor 72 72 72 73 73 73 74 74 74 74 7Generation GWh 93665 100196 107274 115680 124861 135264 146261 158125 170889 183208 198201Peak Load MW 14851 15886 17008 18090 19525 21152 22563 24393 26362 28262 30575 Capacity at the beginning of the Year MW 18658 18658 21573 22298 23823 25773 28153 30296 32002 34363 36684Committed Project PLN Portion 0 730 60 945 720 0 0 0 0 0 0Muara Karang Repowering PLTGU 720Muara Tawar Extension PLTGU 225Priok Extension PLTGU 720Pemaron Extension PLTGU 50Cilegon PLTGU 730Cibuni PLTP 10 Private Portion 0 2040 290 580 0 0 0 0 0 0 0Tanjung Jati B 12 PLTU 1320Cilacap 1-2 PLTU 600Kamojang 4 PLTP 60Wayang Windu PLTP 110Dieng PLTP 60 60Darajat 3 PLTP 110Patuha PLTP 60 120Bedugul PLTP 10Anyer PLTGU 400New Project Plan Addition of New Generator 0 145 375 0 1230 2380 2330 1890 2360 2320 2720Muara Tawar Add On 2 PLTGU 145 225Kamojang 5 PLTP 60PLTU PLTU 500 660 1200 660 660 1320 1320PLTG PLTG 200 400 200 400PLTGU PLTGU 150 730 1460 730 730 1000 1000 1000Pump Storage Upper Cisokan PLTA 500 500 Total Additional Capacity MW 0 2915 725 1525 1950 2380 2330 1890 2360 2320 2720Total System Capacity MW 18658 21573 22298 23823 25773 28153 30483 32186 34362 36683 39404Reserve Margin 26 36 31 32 32 33 35 32 30 30 29Required Capacity MW 20048 21446 22961 24421 26359 28556 29332 31711 34271 36741 39748Shortage or Surplus MW 1390 -127 663 598 586 403 -1151 -475 -91 58 344

2

4

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG

RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

2 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 16: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 12-1 Objective Sixteen (16) Power Stations in Java-Bali Region Owner Power Station Type Fuel Total Output (MW)

Suralaya Conventional Coal 400 MWtimes4 600 MW times 3 3400Conventional MFO 50 MWtimes2

CC GasHSD (130 MW times 3 + 200 MW) times 2 BL Tanjung Priok

Gas Turbine GasHSD 26 MW times 2 1430Conventional MFO 50 MW times 2 + 200 MW Tambak Lorok

CC GasHSD (10965 MW times 3 + 188 MW) times 2BL 1334CC GasHSD 10075 MW times 3 + 15958 MW Grati

Gas Turbine HSD 10075 MW times 3 764Perak Conventional MFO 50 MW times 2 100

Gas Turbine HSD 2135 + 2010 + 4200 times 2 Pesanggaran Diesel HSD 9 units Total 6568 MW 201

Gilimanuk Gas Turbine HSD 1338 MW 134Pemaron CC HSD 488 MW times 2 + 484 MW 150Saguling Hydro - 17518 MW times 4 70072

IP

Soedirman Hydro - 6030 times 3 1809Conventional GasMFO 100 MWtimes3 + 200 MW times 2 Muara Karang

CC GasHSD 10786 MWtimes3 + 18510 MW 1209Conventional GasMFO 100 MW times 2 + 200 MW times 2 Gresik

CC GasHSD (11245 MW times 3 + 18891 MW) times 3BL 2239Paiton Conventional Coal 400 MW times 2 800Muara Tawar CC GasHSD 140 MWtimes5 + 220 MW 920Cirata Hydro - 126 MW times 8 1008

PJB

Sutami Hydro - 35 MW times 3 105

Note HSD means High Speed Diesel Oil MFO means Marine Fuel Oil CC means Combined Cycle

(as of Nov2005)

Figure 12-1 Location of Objective Power Station and 500kV Transmission Line

1 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

132 Scope of Work

The Study is to develop the improvement measures relating to the existing power facilities and operation and maintenance based on the analyses of current situation of the objective power stations in order to reduce the gap between the installed capacity (total rated capacity approximately 19500 MW) and available power supply capacity (approximately 14500 MW) which is regarded as the cause of tight of power balance and accounted to about 5000 MW (26 of total installed capacity) The Study is consisted of the following scope of work

(1) Preliminary Survey Stage

The following survey will be carried out in order to confirm the current situation of each power facilities in Java-Bali region

1) Collection of data and information of the following items through the investigation of the relevant organization in Indonesia and electric power facilities in Java-Bali Region a) Performance of power generation facilities b) Current situation of operation maintenance and inspection c) Organization and regulation for operation maintenance and inspection d) Needs for the technology transfer on operation maintenance and inspection e) 500 kV transmission line of Java-Bali system f) Plan of fuel supply

2) Review of the related reports and other relevant information

(2) Analysis and Examination Stage

Based on the result of the Preliminary Survey Stage current situation and management system would be analyzed for each power generation facilities and necessary countermeasures would be examined The following items will be considered in each power generation facilities

1) Improvement measures of power generation facilities including rehabilitation modification and re-powering

2) Improvement measures of management for operation maintenance and inspection

3) Economic and financial analysis of the above mentioned improvement

4) Grading the power facilities in need of improvement

(3) Technology Transfer Stage

Based on the impact and the needs for the technology transfer on operation maintenance

Final Report 1 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

and inspection with are confirmed in the Preliminary Survey Stage technology transfer on operation maintenance and inspection will be conducted at the time of maintenance and inspection

(4) Recommendation Stage

Considering the results of the above mentioned stages the following plan and recommendation will be submitted

1) Rehabilitation modification or re-powering plan of the power generation facilities

2) Management plan and general guidelines of operation maintenance and inspection

3) Recommendation to the organization and regulation for enhancing the capability of operation maintenance and inspection

4) Development plan of human resources for operation maintenance and inspection

1 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

2 RECOGNITION OF CURRENT SITUATION IN JAVA-BALI REGION 21 Confirmation of Power Development Plan 211 Power Development Plan

(1) Power Development Plan based on April 25 2005

The following tables show the power development plan from the year 2005 to 2015 for Java-Bali region and whole Indonesia as of April 2005

Table 21-1 Power Development Plan in Java-Bali Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Required Energy Residents GWh 28612 30074 31640 33315 35107 37016 38984 41015 43111 45277 47515 Public GWh 3851 4012 4179 4352 4534 4719 4868 5022 5181 5345 5514 Commercial GWh 13013 14526 16202 18060 20121 22478 25102 28024 31279 34906 38948 Industry GWh 35674 38484 41759 45439 49508 54205 59176 64515 70290 76557 83372Required Total GWh 81150 87095 93779 101166 109269 118418 128131 138576 149861 162085 175350Growth Rate - 73 77 79 80 84 82 82 81 82 8 System Loss (TampD) 114 110 104 103 103 102 101 101 100 100 100 Station Use 4 4 4 4 4 4 4 4 4 3 3Total Loss 15 15 14 14 14 14 14 14 14 13 13Load Factor 72 72 72 73 73 73 74 74 74 74 7Generation GWh 93665 100196 107274 115680 124861 135264 146261 158125 170889 183208 198201Peak Load MW 14851 15886 17008 18090 19525 21152 22563 24393 26362 28262 30575 Capacity at the beginning of the Year MW 18658 18658 21573 22298 23823 25773 28153 30296 32002 34363 36684Committed Project PLN Portion 0 730 60 945 720 0 0 0 0 0 0Muara Karang Repowering PLTGU 720Muara Tawar Extension PLTGU 225Priok Extension PLTGU 720Pemaron Extension PLTGU 50Cilegon PLTGU 730Cibuni PLTP 10 Private Portion 0 2040 290 580 0 0 0 0 0 0 0Tanjung Jati B 12 PLTU 1320Cilacap 1-2 PLTU 600Kamojang 4 PLTP 60Wayang Windu PLTP 110Dieng PLTP 60 60Darajat 3 PLTP 110Patuha PLTP 60 120Bedugul PLTP 10Anyer PLTGU 400New Project Plan Addition of New Generator 0 145 375 0 1230 2380 2330 1890 2360 2320 2720Muara Tawar Add On 2 PLTGU 145 225Kamojang 5 PLTP 60PLTU PLTU 500 660 1200 660 660 1320 1320PLTG PLTG 200 400 200 400PLTGU PLTGU 150 730 1460 730 730 1000 1000 1000Pump Storage Upper Cisokan PLTA 500 500 Total Additional Capacity MW 0 2915 725 1525 1950 2380 2330 1890 2360 2320 2720Total System Capacity MW 18658 21573 22298 23823 25773 28153 30483 32186 34362 36683 39404Reserve Margin 26 36 31 32 32 33 35 32 30 30 29Required Capacity MW 20048 21446 22961 24421 26359 28556 29332 31711 34271 36741 39748Shortage or Surplus MW 1390 -127 663 598 586 403 -1151 -475 -91 58 344

2

4

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG

RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

2 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 17: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

132 Scope of Work

The Study is to develop the improvement measures relating to the existing power facilities and operation and maintenance based on the analyses of current situation of the objective power stations in order to reduce the gap between the installed capacity (total rated capacity approximately 19500 MW) and available power supply capacity (approximately 14500 MW) which is regarded as the cause of tight of power balance and accounted to about 5000 MW (26 of total installed capacity) The Study is consisted of the following scope of work

(1) Preliminary Survey Stage

The following survey will be carried out in order to confirm the current situation of each power facilities in Java-Bali region

1) Collection of data and information of the following items through the investigation of the relevant organization in Indonesia and electric power facilities in Java-Bali Region a) Performance of power generation facilities b) Current situation of operation maintenance and inspection c) Organization and regulation for operation maintenance and inspection d) Needs for the technology transfer on operation maintenance and inspection e) 500 kV transmission line of Java-Bali system f) Plan of fuel supply

2) Review of the related reports and other relevant information

(2) Analysis and Examination Stage

Based on the result of the Preliminary Survey Stage current situation and management system would be analyzed for each power generation facilities and necessary countermeasures would be examined The following items will be considered in each power generation facilities

1) Improvement measures of power generation facilities including rehabilitation modification and re-powering

2) Improvement measures of management for operation maintenance and inspection

3) Economic and financial analysis of the above mentioned improvement

4) Grading the power facilities in need of improvement

(3) Technology Transfer Stage

Based on the impact and the needs for the technology transfer on operation maintenance

Final Report 1 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

and inspection with are confirmed in the Preliminary Survey Stage technology transfer on operation maintenance and inspection will be conducted at the time of maintenance and inspection

(4) Recommendation Stage

Considering the results of the above mentioned stages the following plan and recommendation will be submitted

1) Rehabilitation modification or re-powering plan of the power generation facilities

2) Management plan and general guidelines of operation maintenance and inspection

3) Recommendation to the organization and regulation for enhancing the capability of operation maintenance and inspection

4) Development plan of human resources for operation maintenance and inspection

1 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

2 RECOGNITION OF CURRENT SITUATION IN JAVA-BALI REGION 21 Confirmation of Power Development Plan 211 Power Development Plan

(1) Power Development Plan based on April 25 2005

The following tables show the power development plan from the year 2005 to 2015 for Java-Bali region and whole Indonesia as of April 2005

Table 21-1 Power Development Plan in Java-Bali Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Required Energy Residents GWh 28612 30074 31640 33315 35107 37016 38984 41015 43111 45277 47515 Public GWh 3851 4012 4179 4352 4534 4719 4868 5022 5181 5345 5514 Commercial GWh 13013 14526 16202 18060 20121 22478 25102 28024 31279 34906 38948 Industry GWh 35674 38484 41759 45439 49508 54205 59176 64515 70290 76557 83372Required Total GWh 81150 87095 93779 101166 109269 118418 128131 138576 149861 162085 175350Growth Rate - 73 77 79 80 84 82 82 81 82 8 System Loss (TampD) 114 110 104 103 103 102 101 101 100 100 100 Station Use 4 4 4 4 4 4 4 4 4 3 3Total Loss 15 15 14 14 14 14 14 14 14 13 13Load Factor 72 72 72 73 73 73 74 74 74 74 7Generation GWh 93665 100196 107274 115680 124861 135264 146261 158125 170889 183208 198201Peak Load MW 14851 15886 17008 18090 19525 21152 22563 24393 26362 28262 30575 Capacity at the beginning of the Year MW 18658 18658 21573 22298 23823 25773 28153 30296 32002 34363 36684Committed Project PLN Portion 0 730 60 945 720 0 0 0 0 0 0Muara Karang Repowering PLTGU 720Muara Tawar Extension PLTGU 225Priok Extension PLTGU 720Pemaron Extension PLTGU 50Cilegon PLTGU 730Cibuni PLTP 10 Private Portion 0 2040 290 580 0 0 0 0 0 0 0Tanjung Jati B 12 PLTU 1320Cilacap 1-2 PLTU 600Kamojang 4 PLTP 60Wayang Windu PLTP 110Dieng PLTP 60 60Darajat 3 PLTP 110Patuha PLTP 60 120Bedugul PLTP 10Anyer PLTGU 400New Project Plan Addition of New Generator 0 145 375 0 1230 2380 2330 1890 2360 2320 2720Muara Tawar Add On 2 PLTGU 145 225Kamojang 5 PLTP 60PLTU PLTU 500 660 1200 660 660 1320 1320PLTG PLTG 200 400 200 400PLTGU PLTGU 150 730 1460 730 730 1000 1000 1000Pump Storage Upper Cisokan PLTA 500 500 Total Additional Capacity MW 0 2915 725 1525 1950 2380 2330 1890 2360 2320 2720Total System Capacity MW 18658 21573 22298 23823 25773 28153 30483 32186 34362 36683 39404Reserve Margin 26 36 31 32 32 33 35 32 30 30 29Required Capacity MW 20048 21446 22961 24421 26359 28556 29332 31711 34271 36741 39748Shortage or Surplus MW 1390 -127 663 598 586 403 -1151 -475 -91 58 344

2

4

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG

RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

2 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 18: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

and inspection with are confirmed in the Preliminary Survey Stage technology transfer on operation maintenance and inspection will be conducted at the time of maintenance and inspection

(4) Recommendation Stage

Considering the results of the above mentioned stages the following plan and recommendation will be submitted

1) Rehabilitation modification or re-powering plan of the power generation facilities

2) Management plan and general guidelines of operation maintenance and inspection

3) Recommendation to the organization and regulation for enhancing the capability of operation maintenance and inspection

4) Development plan of human resources for operation maintenance and inspection

1 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

2 RECOGNITION OF CURRENT SITUATION IN JAVA-BALI REGION 21 Confirmation of Power Development Plan 211 Power Development Plan

(1) Power Development Plan based on April 25 2005

The following tables show the power development plan from the year 2005 to 2015 for Java-Bali region and whole Indonesia as of April 2005

Table 21-1 Power Development Plan in Java-Bali Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Required Energy Residents GWh 28612 30074 31640 33315 35107 37016 38984 41015 43111 45277 47515 Public GWh 3851 4012 4179 4352 4534 4719 4868 5022 5181 5345 5514 Commercial GWh 13013 14526 16202 18060 20121 22478 25102 28024 31279 34906 38948 Industry GWh 35674 38484 41759 45439 49508 54205 59176 64515 70290 76557 83372Required Total GWh 81150 87095 93779 101166 109269 118418 128131 138576 149861 162085 175350Growth Rate - 73 77 79 80 84 82 82 81 82 8 System Loss (TampD) 114 110 104 103 103 102 101 101 100 100 100 Station Use 4 4 4 4 4 4 4 4 4 3 3Total Loss 15 15 14 14 14 14 14 14 14 13 13Load Factor 72 72 72 73 73 73 74 74 74 74 7Generation GWh 93665 100196 107274 115680 124861 135264 146261 158125 170889 183208 198201Peak Load MW 14851 15886 17008 18090 19525 21152 22563 24393 26362 28262 30575 Capacity at the beginning of the Year MW 18658 18658 21573 22298 23823 25773 28153 30296 32002 34363 36684Committed Project PLN Portion 0 730 60 945 720 0 0 0 0 0 0Muara Karang Repowering PLTGU 720Muara Tawar Extension PLTGU 225Priok Extension PLTGU 720Pemaron Extension PLTGU 50Cilegon PLTGU 730Cibuni PLTP 10 Private Portion 0 2040 290 580 0 0 0 0 0 0 0Tanjung Jati B 12 PLTU 1320Cilacap 1-2 PLTU 600Kamojang 4 PLTP 60Wayang Windu PLTP 110Dieng PLTP 60 60Darajat 3 PLTP 110Patuha PLTP 60 120Bedugul PLTP 10Anyer PLTGU 400New Project Plan Addition of New Generator 0 145 375 0 1230 2380 2330 1890 2360 2320 2720Muara Tawar Add On 2 PLTGU 145 225Kamojang 5 PLTP 60PLTU PLTU 500 660 1200 660 660 1320 1320PLTG PLTG 200 400 200 400PLTGU PLTGU 150 730 1460 730 730 1000 1000 1000Pump Storage Upper Cisokan PLTA 500 500 Total Additional Capacity MW 0 2915 725 1525 1950 2380 2330 1890 2360 2320 2720Total System Capacity MW 18658 21573 22298 23823 25773 28153 30483 32186 34362 36683 39404Reserve Margin 26 36 31 32 32 33 35 32 30 30 29Required Capacity MW 20048 21446 22961 24421 26359 28556 29332 31711 34271 36741 39748Shortage or Surplus MW 1390 -127 663 598 586 403 -1151 -475 -91 58 344

2

4

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG

RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

2 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 19: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

2 RECOGNITION OF CURRENT SITUATION IN JAVA-BALI REGION 21 Confirmation of Power Development Plan 211 Power Development Plan

(1) Power Development Plan based on April 25 2005

The following tables show the power development plan from the year 2005 to 2015 for Java-Bali region and whole Indonesia as of April 2005

Table 21-1 Power Development Plan in Java-Bali Region 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Required Energy Residents GWh 28612 30074 31640 33315 35107 37016 38984 41015 43111 45277 47515 Public GWh 3851 4012 4179 4352 4534 4719 4868 5022 5181 5345 5514 Commercial GWh 13013 14526 16202 18060 20121 22478 25102 28024 31279 34906 38948 Industry GWh 35674 38484 41759 45439 49508 54205 59176 64515 70290 76557 83372Required Total GWh 81150 87095 93779 101166 109269 118418 128131 138576 149861 162085 175350Growth Rate - 73 77 79 80 84 82 82 81 82 8 System Loss (TampD) 114 110 104 103 103 102 101 101 100 100 100 Station Use 4 4 4 4 4 4 4 4 4 3 3Total Loss 15 15 14 14 14 14 14 14 14 13 13Load Factor 72 72 72 73 73 73 74 74 74 74 7Generation GWh 93665 100196 107274 115680 124861 135264 146261 158125 170889 183208 198201Peak Load MW 14851 15886 17008 18090 19525 21152 22563 24393 26362 28262 30575 Capacity at the beginning of the Year MW 18658 18658 21573 22298 23823 25773 28153 30296 32002 34363 36684Committed Project PLN Portion 0 730 60 945 720 0 0 0 0 0 0Muara Karang Repowering PLTGU 720Muara Tawar Extension PLTGU 225Priok Extension PLTGU 720Pemaron Extension PLTGU 50Cilegon PLTGU 730Cibuni PLTP 10 Private Portion 0 2040 290 580 0 0 0 0 0 0 0Tanjung Jati B 12 PLTU 1320Cilacap 1-2 PLTU 600Kamojang 4 PLTP 60Wayang Windu PLTP 110Dieng PLTP 60 60Darajat 3 PLTP 110Patuha PLTP 60 120Bedugul PLTP 10Anyer PLTGU 400New Project Plan Addition of New Generator 0 145 375 0 1230 2380 2330 1890 2360 2320 2720Muara Tawar Add On 2 PLTGU 145 225Kamojang 5 PLTP 60PLTU PLTU 500 660 1200 660 660 1320 1320PLTG PLTG 200 400 200 400PLTGU PLTGU 150 730 1460 730 730 1000 1000 1000Pump Storage Upper Cisokan PLTA 500 500 Total Additional Capacity MW 0 2915 725 1525 1950 2380 2330 1890 2360 2320 2720Total System Capacity MW 18658 21573 22298 23823 25773 28153 30483 32186 34362 36683 39404Reserve Margin 26 36 31 32 32 33 35 32 30 30 29Required Capacity MW 20048 21446 22961 24421 26359 28556 29332 31711 34271 36741 39748Shortage or Surplus MW 1390 -127 663 598 586 403 -1151 -475 -91 58 344

2

4

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG

RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

2 - 1 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 20: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-2 Power Development Plan for Whole Indonesia Items 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Required Energy GWh 103786 111562 120247 129832 140349 152189 164609 178031 192589 208287 225299Growth Rate - 75 78 80 81 84 82 82 82 82 82Generation GWh 119458 127973 137239 148067 159943 173344 187331 202510 171545 235061 254207Peak Load MW 19942 21354 22902 24432 26375 28568 30540 32991 36489 38242 41309Existing Capacity MW 24097 24089 23894 23781 23769 23757 23764 23548 23256 23152 23052Total System Capacity MW 24965 28162 29764 31942 34805 37995 41176 43552 46470 49487 53132Required Capacity MW 26921 28838 30938 32958 35594 38496 40044 43282 46690 50086 54082Shortage or surplus MW 1956 675 1173 1015 789 501 -1133 -270 220 599 950

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005 TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025

DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above tables the following findings are observed

a) The Indonesian Government (MEMR) forecasts 7 ~ 8 of the growth rate for power demand in Java-Bali region and whole Indonesia

b) The peak demand in the year 2010 five (5) years later is estimated to 21152 MW in Java-Bali region and 42 more in comparison with 14851 MW in the year 2005 To meet the peak demand in the year 2010 the new power stations andor re-powering projects will be intensively implemented in the next four years from the year 2006 Since the most projects for the next four (4) years are committed projects the materialization of the power development program is well expected

c) Since there are not committed projects after the year 2010 the Indonesian Government has to prepare the concrete power development projects in cooperation with PLN in the next few years taken account of the long lead time for power source development

The table below shows the future power development plan from the view point of fuel type from the year 2005 to 2015

Final Report 2 - 2

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 21: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-3 Power Development Plan by Fuel Type 1 Java - Bali System (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 40766 47223 46304 47130 50209 54134 61440 66546 71516 80111 88975Hydro 4231 4105 5342 6168 6181 6059 6007 6776 7410 7332 7524Gas 28492 28730 31353 34948 41319 47793 51438 55789 61382 65646 70840Geothermal 2829 3300 5891 8136 8149 8500 8448 9217 9851 9773 9965BBM (Refined Fuel Oil) 17347 16839 18383 19298 19003 18778 18929 19797 20731 20345 20897Uranium 0 0 0 0 0 0 0 0 0 0 0

2 Whole Indonesia (GWh)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Coal 45472 52471 53198 57184 63949 71080 79513 86548 93915 104452 116458Hydro 7854 8252 10061 10699 10482 10150 11007 12583 13448 14717 15317Gas 35427 36169 39514 44501 52486 60529 65194 70754 77744 83142 90183Geothermal 2969 3461 6091 8335 8471 9619 9966 10735 12043 11966 12219 BBM (Refined Fuel Oil) 26442 26300 27739 28297 27458 26676 26841 27883 28831 28672 29318Uranium 0 0 0 0 0 0 0 0 0 0 0

Generation by Fuel O rigin (Java-Bali Region)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Generation by Fuel Origin (Whole Indonesia)

0

20000

40000

60000

80000

100000

120000

140000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Gen

erat

ion

(GW

h)

Coal Hydro Gas Geothermal Oil Uranium

Source KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL NOMOR 1213 K31MEM2005

TENTANG RENCANA UMUM KETENAGALISTRIKAN NASIONAL 2005 - 2025 DEPARTMEN ENERGI DAN SUMBER DAYA MINERAL JAKARTA 25 April 2005

Referring to the above table the following findings are observed

a) The main power sources contributing to power supply in Indonesia are coal-fired power stations and the second is the gas-fired power stations The other power stations such as MFO-fired hydro HSD-fired and geothermal will not be increased remarkably This means that the coal-fired and gas-fired power stations are to burden the future power demand increase

b) The following figure also shows the fuel consumption from the year 2000 to 2004 Concerning the last five (5) years the only gas consumption has been decreased while other fuels have been increased or kept the past level Considering the reduction trend of the gas consumption for the last five years gas-fired power station as forecasted in the previous page seems to be worried about its realization unless the intensified efforts by the relevant agencies

2 - 3 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 22: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2000 2001 2002 2003 2004

Year

Coa

l to

n H

SD amp

MFO

Kilo

Lite

r

0

50000

100000

150000

200000

250000

Gas

(M

MSC

F)

HSD MFO Coal Gas

Source Statistik PLN 2004

Fuel Consumption

(2) Crash Program for New Coal-fired Thermal Power Stations

PLN has announced the development program of new coal fired thermal power plant projects to the amount of 10000 MW within next three years on May 22 2006 as shown blow The purpose of the implementation of new coal fired thermal stations is to promote the diversification of energy in other words to cut the current expensive oil fuel according to the newspaper In this connection the Presidential Decree No 71 (Team Formation) and No 72 (List of Projects) was issued

The Jakarta Post said ldquoIt expects that by 2010 the use of expensive fuel-fired power plants will be reduced to just 5 percent of total capacity from the current 30 percent which would cut costs by as much as 80 percent1rdquo In line with the new crash program MEMR has been revising the national power development plan (2006 ~ 2026) accordingly and released on June 30 2006 The existing oil-fired power stations are more likely to be affected by the crash program in some way

1 Jakarta post July 21 2006

Final Report 2 - 4

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 23: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 21-4 Announcement of Coal Fired Power Plant Projects

PT PLN (PERSERO) ANNOUNCEMENT FOR THE DEVELOPMENT PROGRAM

OF COAL FIRED POWER PLANT PROJECTS

1 To improve the efficiency of National Oil utilization PLN is required by the Government to accelerate the energy diversification by developing coal fired power plants with the total capacity up to 10000 MW through-out Indonesia for the next 3 years

2 The projects locations and size are as follows

A Coal Fired Steam Power Plant (CFSPP) in Jawa Island No Name Location Capacity (MW) Province

1 CFSPP Jabar Selatan 2 x 300 Jawa Barat 2 CFSPP Jatim Selatan Pacitan 2 x 300 Jawa Timur 3 CFSPP Labuan 1 x 300 Jawa Barat 4 CFSPP Marunda 1 x 600 Jawa Barat 5 CFSPP Rembang 2 x 300 Jawa Tengah 6 CFSPP Suralaya Baru 2 x 660 Jawa Barat 7 CFSPP Teluk Naga 2 x 300 DKI Jakarta 8 CFSPP Jabar Utara 2 x 300 Jawa Barat 9 CFSPP Tanjung Awar-Awar 1 x 600 Jawa Timur

10 CFSPP Paiton Baru 2 x 660 Jawa Timur B Coal Fired Steam Power Plant (CFSPP) outside Jawa Island

No Name Location Capacity (MW) Province 1 CFSPP Meulaboh 2 x 65 NAD 2 CFSPP Sibolga Baru 2 x 100 Sumatera Utara 3 CFSPP Sumbar Pesisir Selatan 2 x 100 Sumatera Barat 4 CFSPP Amurang Baru 2 x 25 Sulawesi Utara 5 CFSPP Tarahan Baru 2 x 100 Lampung 6 CFSPP Mantung 2 x 10 Bangka Belitung 7 CFSPP Air Anyer 2 x 10 Bangka Belitung 8 CFSPP Timika 2 x 7 Papua 9 CFSPP Bengkalis 2 x 7 Riau

10 CFSPP Selat Panjang 2 x 5 Riau 11 CFSPP Kendari 2 x 10 Sulawesi Tenggara 12 CFSPP Ende 2 x 7 Nusa Tenggara Timur 13 CFSPP Asam-Asam 2 x 65 Kalimantan Selatan 14 CFSPP Bone 2 x 15 Sulawesi Selatan

3 The projects are planned to be in operation latest by mid 2009

Jakarta 22 May 2006 ACTING DIRECTOR FOR GENERATION AND PRIMARY ENERGY PT PLN (Persero)

Source Jakarta Post 22 May 2006

2 - 5 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 24: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

212 Transmission System Expansion Plan

(1) Expansion Plan in Ten Years

The expansion plans of 500 kV transmission line and 500 kV substation in ten years are shown in the following tables 3399 km transmission lines and 18998 MVA transformers will be constructed in the next decade

Expansion Plan of 500 kV Transmission Line (km)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

861 178 280 250 110 920 356 - - 444

Expansion Plan of 500 kV Transformer (MVA)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

3498 3000 - 1000 500 2500 2000 2000 1500 3000

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

According to Rencana Usaha Penyediaan Tenaga Listrik 2006-2015 (hereinafter referred to as ldquoRUPTLrdquo) which describes 10-year plan of electric power facilities in PLN almost all transmission lines and substations (including expansion of transformer) which are planned to be constructed in the next two years until the end of 2007 have been already prepared of finance But only a few transmission lines and substations for example 500 kV Rancaekek substation and associated transmission line which will be constructed in the central area of Java in 2006 500 kV transformer in Cibatu substation in the west of Java in 2006 and etc have not been determined financial sources The expansion plans of transmission lines and substations after 2008 are also expected to be financed in order to supply electricity to an increasing demand in parallel with generators which will be newly installed

Based on the acquired information in the site investigation in November 2005 two major expansion plans in the 500 kV power system are described below ldquo(2) Southern 500 kV Transmission Linerdquo and ldquo(3) Java-Sumatera Interconnection Projectrdquo

(2) Southern 500 kV Transmission Line (including Substation)

In order to supply from the eastern part which has a lot of power sources to the western part in Java including Jakarta which is the biggest demand area it is necessary to solve the problem of system stability (Section 331) in Java-Bali system and to improve the reliability That is why southern 500 kV transmission line from Paiton PS to Depok III SS 2 through

2 The construction of southern 500kV transmission line was completed in June 2006

Final Report 2 - 6

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 25: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Kediri SS Klaten SS and Tasikmalaya SS is under construction as shown in the following figure

The section from Paiton PS to Klaten SS was already constructed and is in operation as of November 2005 But the one from Klaten SS to Depok III has not connected yet 90 and more of construction works are completed but construction works such as transmission lines around Depok III SS are delayed because of the difficulties of the land acquisition around the area This southerly transmission line will be operated by the end of 2006

(as of Nov2005)

Figure 21-1 Southerly 500 kV Transmission Line

(3) Java-Sumatera Interconnection Project

According to RUPTL a coal fired power plant will be constructed in Mulut Tamgbang Sumatera The total capacity is planned as 2400 MW (600 MW times 2 in 2010 and 600 MW times 2 in 2011) 400 MW of the planned capacity will be supplied inside Sumatera and the rest 2000 MW will be transmitted to Java-Bali System As one of the methods of supply from Sumatera to Java there is a plan as follows

1) Method of transmission Electricity generated at Mulut Tambang will be transmitted to Depok SS in Java by DC 500 kV bipolar

2) Transmission line The outline of transmission line in this project is shown in the table below

Transmission Line of Java-Sumatera Interconnection

Section Transmission Length (km) South Sumatera Minemouth ~ Ketapang Overhead Line 400

Ketapang ~ Salira Submarine Cable 40 Salira ~ Depok III Overhead Line 200 more

Source Rencana Usaha Penyediaan Tenaga Listrik 2006-2015

2 - 7 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 26: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Considering the final capacity (2400 MW) the transmission line will be designed to transmit the final capacity at the time of commencement in 2012

3) Converter Station ACDC converter of 1200 MW in 2011 and 1200 MW in 2012 will be installed along with the expansion of generators in South Sumatera

PLN recognize that there are two difficulties to be solved in order to realize this project One is that there will be a social issue because the range of land acquisition is wide The other is that the influence on Java-Bali System after interconnection has to be considered A further study is necessary for the realization of the project in accordance with the power development plan in Java Island

(4) Java-Bali Interconnection Project

According to RUPTL in Bali island the total supply capacity of the existing generators and newly installed generators considering supply from Java island will reach 874 MW in 2008 But in the future the amount of demand will exceed the total supply capacity because the demand will be expected to highly increase Therefore the new 500kV transmission line will be constructed between Paiton substation in Java and newly installed Kapal substation in Bali in order to strengthen the system interconnection As a result the supply capacity is enough for the demand in Bali as of 2015 Hereafter a further study is necessary in accordance with the power development plan including the repowering plan of the existing generators which is recommended in this report

Since a coal fired power station with 3 times 130 MW (Celukan Bawang (Northern part of Bali)) will be operated in 2009 and 2010 and a coal fired thermal power station with 2 x 100 MW (Eastern part of Bali) based on the infrastructure project will be operated in 2012 the Java-Bali Interconnection project will be after the implementation of these coal fired power stations

Now PLN has been conducting pre-FS on a coal fired thermal power station in Nusa Penida located at South of Bali Island

Final Report 2 - 8

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 27: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

22 Confirmation of Fuel Supply Plan 221 Fuel Oil Prices

The trend of fuel oil prices relating to MFO and HSD which are used in power stations for the period from February 2003 to April 2006 are shown in the figure below As shown in the figure fuel prices have skyrocketed in 2005 in line with the rise of crude oil worldwide Since China which had been one of the exporters of oil is a oil importer substantially according to her sharp economic growth the high fuel prices might be continued for some time As of April 2006 the fuel prices for MFO and HSD have not been accompanied by any subsidies

165

0 205

02

050

203

01

790

170

01

710

188

01

950

189

01

990

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050

205

02

050 2

660

266

0

524

05

130

513

0 578

05

940

518

04

810

502

04

900

498

3

156

01

600

160

01

580

156

01

560

157

01

600

156

01

890

156

01

560

156

01

560

156

01

590

160

01

600

160

01

600

160

01

600

160

01

600

160

02

300

230

0 290

03

150

315

03

150

381

03

870

368

03

480

338

03

603

367

2

456

0

0

1000

2000

3000

4000

5000

6000

7000

030

201

030

401

030

601

030

801

031

001

031

201

040

201

040

401

040

601

040

801

041

001

041

201

050

201

050

401

050

801

051

001

051

101

060

101

060

301

Date(yymmdd)

Fuel

Pri

ce (R

pL

iter)

HSD MFOSource PERTAMINA Homepage

Figure 22-1 Trend of Fuel Oil Prices For HSD and MFO

222 Natural Gas

In the course of the site visit to the objective twelve (12) thermal power stations the fuel issue especially gas supply seems to be serious issue for the current Power Sector in Indonesia because some combined cycle power stations3 (or blocks) have never used (natural) gas since the initial commercial operation even though they were designed as duel firing power stations due to shortage of gas supply On the other hand the gas-fired thermal power stations (combined cycle power stations) will be increased in future as shown in Section 211 Table 22-1 shows the future gas demand and supply plan in Java-Bali region for the period

3 st For example Muara Tawar PS Grati PS and Tambak Lorok PS have never used gas since the 1 commercial operation

2 - 9 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 28: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

from 2006 to 2015 as of August 2006 provided by PLN However the gas demand and supply plan does not reflect the actual situation For example Muara Tawar Block 1 amp 2 Grati Pesanggaran Pemaron and Gilimanuk could use gas from the year 2006 although they are still forced to use oil as of July 2006 Measures for the shortage of gas supply as far as PLN concerned seem to be two alternatives One is to cut the gas supply to power stations the other is to request BPMIGAS which is the government agency under the presidentrsquos direct control and have the power to supervise the business activities relating to gas to allocate more gas to Power Sector At the moment PLN seems to be forced to select the former option in a short term even though the additional efforts are made as described in Section 223 The following table is reference only because gas supply is out of control of PLN

Table 22-1 Gas Demand and Supply Balance from 2006 to 2015

Capacity(MW) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PLTU Muara Karang 400 45 45 45 45 45 45 45 45 45 45 45PLTGU Muara Karang 508 70 70 70 70 70 70 70 70 70 70 70PLTGU Tanjung Priok 1180 145 145 145 145 145 145 145 145 145 145 145

PLTGU Muara Tawar I 640 76 76 76 76 76 76 76 76 76 76 76PLTG Muara Tawar 280 18 18 18 76 76 76 76 76 76 76 76PLTG Muara Tawar II 858 56 56 56 56 56 56 56 56 56 56 56

PLTGU Muara Karang Ext 720 38 75 75 75 75 75 75 75 75PLTGU Muara Tawar II 255 27 27 27 27 27 27 27 27PLTGU Tanjung Priok Ext 750 40 80 80 80 80 80 80 80PLTGU Culegon 750 40 80 80 80 80 80 80 80 80 80 80

West Java 1 750 80 80 80 80 80 80 80 80West Java 2 750 80 80 80 80 80 80 80

450 490 528 770 890 890 890 890 890 890 890

PLTGU Tambak Lorok 120 120 120 120 120 120 120 120 120 120 120PLTU Tambak Lorok 23 23 23 23 23 23 23 23 23 23 23

143 143 143 143 143 143 143 143 143 143 143PLTGU Gresik 290 290 290 290 290 290 290 290 290 290 290PLTGU Grati 20 20 20 20 20 60 60 60 60 60 60PLTGU Gtati Extension 60 60 60 60 60 60LTGU Pasuruan (IPP) 60 60 60 60 60 60 60 60Sub Total Demand 310 310 310 370 370 470 470 470 470 470 470

903 943 981 1283 1403 1503 1503 1503 1503 1503 1503265 265 190 135 100 100 100 100 100 100 100

CNOOC (Chaina) signed 50 80 80 80 80 80 80 80 80 80LNG Terminal 158 342 598 598 598 598 598 598Pipe Line from South Sumatra 100 100 100 100 100 100 100 100 100Sub Total Supply 265 315 370 473 622 878 878 878 878 878 878Balance in JAWA BARAT -185 -175 -158 -297 -268 -12 -12 -12 -12 -12 -12Petronas (Malaysia) signed 120 145 145 145 145 110 77 55Sub Total Supply 120 145 145 145 145 110 77 55Balance in JAWA TENGAH -143 -143 -143 -23 2 2 2 2 -33 -66 -88KODECO (Korea) 100 100 100 86 70 55 40 27 KODECO Addition negotiation 15 20 25 30 35 40 0AMERADA HESS Schedule 1 signed 100 100 100 100 100 100 100 100 91 77AMERADA HESS Schedule 2 50 50 50 50 50 50 50 50 74

40 40 40Potential for EMP TS 130 130 130 150 150 150 150 150Sub Total Supply 100 200 290 421 410 360 370 362 340 291 301Balance in JAWA TENGAH -210 -110 -20 51 40 -110 -100 -108 -130 -179 -169

-538 -428 -321 -269 -226 -120 -110 -118 -175 -257 -269

Gas

Sup

ply

(mm

scfd

)

BP ONWJ

SANTOS

Grand Balance in Java-Bali Region

JAW

A T

IMU

RJA

WA

BA

RA

TJA

WA

TEN

GA

Year

Existing Power Plant

Sub Total Demand

JAW

ATE

NG

AHG

as D

eman

d (m

msc

fd)

Grand Total Demand in Java-Bali Region

Contracted

Existing Power Plant

New Power Plant

JAW

A T

IMU

R

Plan Power Plant Project

Sub Total Demand

JAW

A B

AR

AT

Final Report 2 - 10

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 29: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region PT Pertamina PT PGN Tbk PT PLN (Persero) Ditjen (Directorate General) Migas Ditijen LPE and BPMIGAS have a conference in February 23 2006 relating to reinforcement of gas supply to existing power plants in Java-Bali region In the conference the following items have been confirmed and undertaken among the participants

(1) In first quarter in 2007 100 mmscfd of gas from Pertamina (South Sumatra) will be supplied as long as two (2) years to Muara Bekasi for substituting BBM (refined fuel oil) about one million kilo litters per year of the existing Muara Tawar power station The possibility of extension of supply from Pertamina should be kept in mind because Pertamina has still potential (PGN Pertamina and PLN)

(2) Additional 50 mmscfd in 2007 and 2008 will be supplied from PGN in order to substitute of BBM (refined fuel oil) of Muara Tawar about one million kilo litter per year (PGN and PLN)

(3) Development of LNG Terminal at Cilegon will finish in year 20082009 and about 400 mmscfd gas from Tangguh will be available in year 20102011 Possibility of additional gas supply from Bontang and international source will be searched

(BPMIGAS and PLN)

(4) Possibility of additional gas from CNCOO about 40 mmscfd in year 2008 for Cilegon area Confirmation on MarchApril 2006(BPMIGAS and PLN)

(5) Possibility of mini LNG supply from Senoro and Matindok in Sulawesi to Bali system in year 2009 Confirmation on AprilMay 2006 including the certainty of gas amount

(Pertamina and BPMIGAS)

(6) To organize the necessary coordination team to fill the above gas supply plans at least until the end of February 2006 (Ditjen Migas and Ditjen LPE)

As of September 2006 the coordination team was established by Ministerial Decree on June 2006 and has been operating

2 - 11 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 30: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

23 Confirmation of Financial Status of PLN and Power Generation Companies 231 PLN

The financial status of PLN during the last 4 years is shown in the table below

Table 23-1 Profit and Loss Statement of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Revenue

Sale of electricity (Rp) 58232002384555 49809637097889 39018461721493 28275982649678

Customer connection fees 387082924469 342256833433 302307820340 265857730605

Government subsidy 3469919795843 4096633014267 4739073653216 6735209866886

Others 184056742945 182250855819 123510049750 82907269363

Total Revenues 62273061948491 54430777892400 44183353332336 35359957601387

Operating Expenses

Fuel and lubricants 24491052475395 21477867200890 17957261628798 14007295529403

Purchased electricity 11970810669931 10837795807894 11168842948716 8717140537841

Maintenance 5202146146536 4827605605099 3588827620484 3404113925841

Personnel 5619384262234 6533182170671 2583289595495 2630359602830

Depreciation 9547554658124 12745047489459 15626762571070 2086329980623

Others 2879818751609 2164999534730 1420607273725 1094147262141

Total Operating Expenses 59710766963829 58586497808743 52345591638288 31939386838679

Income (Loss) from Operations 2562294984662 (4155719916343) (8162238305952) 3420570762708

Other Income (Charges)

Interest income 231789383338 307927532053 665414275826 363856350535

Interest expense and financial charges (4485927611880) (3581495290148) (2152231840512) (2619507159806)

interest on taxes payable on revaluation increment of property plant and equipment assumed by the Government 4659383947976 - - -

Gain (loss) on foreign exchange - net (1675829753716) 1010385428406 2725596125676 (458948280287)

Others - net 152977086261 222297302045 345645823538 (139826909462)

Other Charges - Net (1117606948021) (2040885027644) 1584424384528 (2854425999020)

Income (Loss) before Tax 1444688036641 (6196604943987) (6577813921424) 566144763688

Tax Expense (3184503325000) (1388881449134) (1814785272530) (569419909556)

Loss from Ordinary Activities (1739815389038) (7585486484113) (8392599281491) (3275230723)

Extraordinary Item - Net of Tax (281551180257) 1685404064580 2333041074720 183393988135

Net Loss (2021366569295) (5900082419533) (6059558206771) 180118757412

Source PLN Annual Report 2004

The Profit and Loss Statement of PLN in 2004 shows a gain (an income) from operations although the results from operation in 2003 and 2002 were in red It came from the fact that the sales of electricity increased by 17 compared with the sales of the previous year while the total operating expense in 2004 saw only 19 increase from the previous year With respect to the fuel cost which is approximately 41 of the total operating expense the price of the high speed diesel oil (HSD) in 2004 being Rp 1829liter increased only by 5 from

Final Report 2 - 12

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 31: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

the price of 2003 However Indonesia suffered substantial price hikes of oil fuel twice in 2005 in March and October which must have affected the financial position of PLN

Energy Sales Power Tariff Fuel Price of PLN

Year 2004 Year 2003 Year 2002 Year 2001

Energy Sales (GWh) 10009747 9044095 8708874 8452038

Average Power Tariff (RpkWh) 58175 55074 44803 33455

Average Production Cost (RpkWh) 64127 65063 54206 33360

Average Fuel Price

- HSD (Rpliter) 182911 174091 140679 87852

- IDO (Rpliter) 169411 170510 133177 79701

- MFO (Rpliter) 169770 159515 112705 65472

- Coal (Rpkg) 23075 23082 21975 19960

- Natural Gas (RpMSCF) 2125805 2155040 2349692 2607378

Source Statistik PLN 2004

According to a document submitted by the Ministry of Energy and Mineral Resources and PLN the power generation cost per kWh in 2005 has increased by 27 from Rp 664 in 2004 to Rp 843 in 2005 This is the result from a significant rise of the oil fuel price in October 2005 which caused increase of PLNrsquos procurement cost of the oil fuel by 19 times from Rp 21940 billion to Rp 41940 billion The oil fuel prices which were used to estimate the power generation cost in 2006 were as follows The estimated price of HSD in 2006 was Rp 4746liter4 which increased from Rp 1650 then Rp 2200 in 2005 The estimated price of IDO in 2006 was Rp 4538liter which increased from Rp 1560 then Rp 2300 in 2005 MFO in 2006 was Rp 2728 increased from Rp 1560 then Rp 2600 in 2005 President Director of PLN has stated that the increase of the power tariff resulting from price hike of the oil fuel is beyond the control of PLN and it is evident that some subsidies are essential in cases where the operating expenses increase without any increase of the revenue and has suggested a need to increase the power tariff Under the circumstances although substantial amount of subsidies are provided or the power tariff rises it may be difficult to improve PLNrsquos financial position as such measures are only to set off the increased procurement cost of fuel to PLN The fuel subsidies provided to PLN in 2005 was Rp 12500 billion and the provision of the subsidies in the amount of Rp 17000 billion has been approved for 2006 without which PLNrsquos financial position is critical

4 As of April 1 2006 HSD and MFO prices without subsidies are 49831 Rpliter and 36727 Rpliter respectively

2 - 13 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 32: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

232 PJB

The financial position of PJB in 2004 and 2003 is shown in the table below

Income from Operation in 2004 was decreased in comparison with that of 2003 due to the same level of sales of electricity and the fuel price hike However in virtue of income of 442 Billion Rp from ldquoOther Expensesrdquo final profit (NET INCOME) exceeded the previous year Fuel price hike happened two times in 2005 may affect the financial condition of PJB

Table 23-2 Profit and Loss Statement of PJB

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 10978 10739

Other operating income 50 57

Total Revenues 11029 10797

Operating Expenses

Fuel 7188 6135

Depreciation 1802 2200

Maintenance 745 654

Personnel 328 337

Other expenses 150 100

Total Operating Expenses 10214 9427

Income from Operations 814 1369

Other Expenses 442 (635)

Income before Tax 1256 734

Tax Expense (524) (225)

Income before Minority Interest in Net 732 508 Income of Consolidated Subsidiaries

Minority Interest in Net Income of 03 (02) Consolidated Subsidiaries

Net Income 732 508

Source Annual Report of PJB 2004

Final Report 2 - 14

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 33: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

233 Indonesia Power (IP)

The financial position of Indonesia Power in 2003 and 2004 is shown in the table below The financial information of 2005 has not been issued by Indonesia Power at the time of preparing this Final Report

Income from operation of 2888 Billion Rp in 2004 exceeded that of year 2003 Fuel price hike happened two times in 2005 may affect the financial condition of IP as well as PJB

Table 23-3 Profit and Loss Statement of IP

Description (in Billion Rp) 2004 2003

Revenues

Sales of electricity 16337 15621

Other operating income 159 83

Total Revenues 16537 15704

Operating Expenses

Fuel 9748 8670

Depreciation 2123 2295

Maintenance 1264 1380

Employee Affairs 583 474

Others 200 182

Total Operating Expenses 13649 13001

Income from Operations 2888 2703

Other Income (Charges)

Repayment of tax due to revaluation of plant asset 1788 -

Interest income 15 16

Penalty income 4 2

Income (loss) for foreign exchange rate (22) 16

Interest expense (1241) (1059)

Others-net (17) 15

Income before Tax Expense and Minority 3414 1693 Interesting Net Income of Consolidated Subsidiaries

Tax Expense (1008) (521)

Income before Minority Interest in Net Income of 2406 1172 Consolidated Subsidiaries

Minority Interest Net Income of Consolidated 0 1 Subsidiaries

Net Income 2406 1174

Source Annual Report of Indonesia Power Income Statement provided on July 17 2006

2 - 15 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 34: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

24 Review of Collected Data and Information Relating to Technology Transfer 241 Thermal Power Station

Remaining Life Assessment carried out in Indonesia seems to be different from that of Japan Remaining Life Assessment in Japan is used for the assessments whether a power station operated more than 20 years is still operational and whether the interval of periodical inspection for the power station is changeable from once two years to once four years from the viewpoint of the reliability On the other hand Remaining Life Assessment in Indonesia seems to be similar with the so-called ldquoEquipment Diagnosisrdquo which has been conducted in a periodical inspection in Japan And concerning the frequency of outages of power stations number of outages in Japan is less than that of Indonesia because the technical standards oblige to replace the relevant component before the occurrence of serious abrasion of thickness in Japan Table 24-1 shows the current situation relating to Remaining Life Assessment and Performance Assessment for PLTU According to the table boiler tubes where steam leakage happened have been almost replaced andor being replaced and therefore the boiler tube leakage will not be the serious issues in the future The followings are concerned issues relating to a boiler a turbine and a generator identified in the 1st Field Work 1) Concerning a boiler LITBANG has conducted Remaining Life Assessment by his

manner and tubes for SH (Super Heater) RH (Re-heater) and WW (Water Wall) where happened abrasion of thickness have been replaced sequentially For Paiton unit 1 amp 2 some countermeasures seem to be necessary because a number of times of steam leakage have happened at the same portion

2) Relating to a turbine body Remaining Life Assessment has not been conducted by PLN

Instead of PLN a manufacturer has conducted Remaining Life Assessment and reported (Suralaya unit 2) The Study Team received the report For Gresik unit 4 sea water leakage at a condenser tube has happened repeatedly and damage at the final stage of low pressure turbine probably caused by Cl included in sea water was observed

3) Relating to a generator for Suralaya unit 2 deterioration of electrical insulation for the

stator is reported by a manufacturer The evaluation of the material used for the insulator seems to be necessary

Final Report 2 - 16

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

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F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

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TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 35: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 24-1 Current Situation for Remaining Life Assessment and Performance Assessment Commissioning

OperatingTime Power Station

Unit Capacity

(MW) yymm

Remaining Life Assessment Situation of Replacementamp

Performance Assessment 20062 base

1 TU 400 198504 20Y10M IP Suralaya

2 TU 400 198506 20Y 8M

3 TU 400 198902 17Y00M

1uBo under repla (SH RH ECO) 200511~12

Boiler Remaining Life Assessment (BRLA) No 073BKIT007E2004

4 TU 400 198911 16Y 9M

2UBo repla finish 20056 ~ 8

Unit -1 UBP SURALAYA (2004 LITBANG)

5 TU 600 199706 8Y 8M Life Extension for Suralaya Preliminary Boiler Inspection for Unit 2

2UT repla by MHI (20049)

6 TU 600 199709 8Y 5M (199801 Babcock amp Wilcox International Inc) 2UG repla by MELCO

(20047) Suralaya Steam Power Plant Unit-2

7 TU 600 199712 8Y 2M

3 TU 500 (1998) 6Y Bo Condrsquo 20033 ~ 20059Tanjung Priok

4 TU 500 200512 0Y 2M

Life Time Assessment of Condenser Tube Unit 3 Aamp B (200405 PT Superintending Company of Indonesia Engineering and Transformation (SUCOFINDO)) Remaining Life Assessment Boiler Unit-2 PLTU Tambak Lorok UBP Semarang No 056 BKIT 097A 2004 (200407 LITBANG) Remaining Life Assessment Boiler Unit-3 PLTU Tambak Lorok UBP Semarang No 189UPI454A2003 (200305 LMK)

1 TU 500 197809 27Y 5M 1UBo finish repla

Tambak Lorok

2 TU 500 197810 27Y 4M 2UBo not yet repla

3UBo finish repla 3 TU 2000 198307 22Y 7M Plan to gas using

1 TU (250) 1964xx Remaining Life Assessment Boiler Unit-3 (ALSTOM) Perak

2 TU (250) 1964xx Tanjung Perak Harbor Surabaya Indonesia

Perak Thermal Plant 3 amp 4 (ST-Rehabilitation MHI)

SH WW Burner 3 TU 500 197804 27Y10M 200511 ~ 12

SH WW Burner 4 TU 500 197807 27Y 7M Thermal Performance Test Report 20059 ~ 10

1 TU 1000 197902 27Y00M PJB

2 TU 1000 197902 27Y00M

Muara Karang

3 TU 1000 197906 26Y 8M Remaining Lfe Assessment of Boiler 4 amp 5 No189BKIT421A2004

4 TU 2000 198111 28Y 3M

Conversion to CC and gas firing (2004 LITBANG)

5 TU 2000 198206 27Y 8M

1 TU 1000 198108 24Y 6M Gresik

2 TU 1000 198111 24Y 3M

3 TU 2000 198803 17Y11M

Laporan Hasil Pengkajian Sisa Umur Steam Bioler Power Plant Unit I PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA)

12 UT blade finish repla

3UT blade under repla (20059) Laporan Hasil Pengkajian Sisa Umur Steam

Bioler Power Plant Unit II PT PJB II UP GRESIK (2004 PT SURVEYOR INDONESIA) Remaining Life Assessment Boiler Pembangkit Listrik Unit 3 PLTU GRESIK (200408 PT SURVEYOR INDONESIA)

4UT blade finish (20056 ~ 9)

4 TU 2000 198807 17Y 7M 1 2 3 4 UBo finish LRA

1 TU 4000 199404 11Y10M Paiton Steam Turbine Inspection Report on Paiton Power Station Unit 1 and 2 (200408 Toshiba) Inspection Report Boiler Paiton Unit 1 2 (200407 Toshiba)

2 TU 4000 199311 12Y3M

Boiler Remaining Life Assessment (BRLA) PLTU Paiton UNIT 1 (20059LITBANG)

2 - 17 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 36: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Concerning a gas turbine and a combined cycle there was nothing to describe especially because inspection has been conducted by hours basis as well as in Japan However some corrosion at HRSG tubes probably caused by HSD fuel with high content of sulfur (S) which a power station has been forced to use due to the lack and or shortage of gas supply even though the relevant power station was designed as dual firing was observed

(1) Remaining Life Assessment

As mentioned above since the content of Remaining Life Assessment in Indonesia seems to be different from that of Japan the followings are proposed tentatively at the moment as Technology Transfer relating to Remaining Life Assessment

a) Introduction of Remaining Life Assessment using ldquoExtreme Value Statistical Analysisrdquo which is one of the evaluation methods for abrasion of thickness relating to SH and RH tubes and evaporation tubes in Boiler

b) Introduction of Equipment Diagnosis for remaining life assessment of embrittlement of a turbine rotator

c) Introduction of Equipment Diagnosis for electrical insulation examination for a generator stator winding

(2) Training

The forecast method for abrasion of thickness relating to a boiler tube and a tank caused by corrosion by using ldquoExtreme Value Statistical Analysisrdquo will be used for training in the Technology Transfer The training will also include the practical exercises for statistics and specification of location for the abrasion thickness measurement

(3) Further Issues

If PJB an IP have intention to operate the current steam turbine and generator for a long time in the future the preparation of Remaining Life Assessment is necessary The outline of the latest paper relating to Remaining Life Assessment in Japan will be introduced for serving the above preparation

(4) Examples of Past Serious Issues Already Solved in Japan

bull Introduction of generation for moisture oxidization scale at a boiler tube causing the deterioration of efficiency and its countermeasure

Final Report 2 - 18

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 37: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

242 Hydropower Station In the course of the 1st Field Work the current situation and the necessity relating to Remaining Life Assessment such as ldquoNondestructive Examinationrdquo and ldquoElectrical Insulation Examination for the generator stator windingrdquo mainly were investigated for objective four (4) hydropower stations and the researching institute of PLN (LITBANG) In parallel with the investigation outline of the Remaining Life Assessment method concerning ldquoCasingrdquo ldquoStay vanerdquo ldquoRunnerrdquo and ldquoGenerator stator windingrdquo which seems to be main items for Technology Transfer at present was introduced by the Study Team The result of the 1st Field Work is as follows

(1) Saguling Power Station

Nondestructive examination relating to the runner and the casing portion and electrical insulation examination for the generator stator winding have not been conducted Concerning the runner the repair work by welding has been carried out sometimes in the periodical inspection However the volume of welding has not been recorded

(2) Cirata Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling Concerning the electrical insulation examination for the generator stator winding dielectric loss tangent measurement (tan δ) was measured by LITBANG and the partial electric discharge measurement has not been conducted due to lack of measurement equipment Any Remaining Life Assessment has not been carried out up to now

(3) Soedirman Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted as well as Saguling and Cirata Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement and dielectric loss tangent measurement (tan δ) have been conducted in the periodical inspection Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

The power station staff strongly requested the Technology Transfer relating to Remaining Life Assessment to be provided by the Study Team because they have not the experience and know-how relating to the Remaining Life Assessment even though they have an intention to conduct by themselves

2 - 19 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 38: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(4) Sutami Power Station

Nondestructive examination relating to the runner and the casing portion has not been conducted Concerning the electrical insulation examination for the generator stator winding insulation resistance measurement has been carried out in the periodical inspection

Concerning the runner the repair work by welding has been carried out in the periodical inspection and dimension of welding area are recorded although the volume of welding has not been recorded

A Japanese manufacturer conducted the investigation relating to the turbine generator and control panel in 2004 and he carried out the nondestructive examination for runner and the electrical insulation examination for the generator stator winding Based on the above electrical insulation examination Remaining Life Assessment for generator stator winding was conducted

(5) LITBANG

LITBANG has much experiences and know-how about the Remaining Life Assessment for thermal power stations although LITBANG has no experience for hydropower stations

LITBANG requested the Technology Transfer of Remaining Life Assessment to be provided by the Study Team relating to hydropower stations

Based on the results of the 1st Field Work it can be said that Remaining Life Assessment utilizing a nondestructive examination and an electrical insulation examination for hydro power stations has not been conducted basically However the relevant personnel showed strong concerns and well understand the necessity and effect Therefore the introduction of Remaining Life Assessment to hydro power stations is well advisable form the viewpoint of preventive maintenance expected to reduce serious accidents

For the above reasons related technologies for a nondestructive examination and an electric insulation examination for generator stator winding are proposed at present as Technology Transfer relating to Remaining Life Assessment for the purpose of further rooting the concept of preventive maintenance in Indonesia

More specific items for Technology Transfer are as follows at the moment (a) Remaining Life Assessment by using the nondestructive examination results for a

casing and a stay vane (b) Remaining Life Assessment by using the management of welding volume for the

turbine runner (c) Remaining Life Assessment by using the results of electrical insulation examination for

the generator stator winding

Final Report 2 - 20

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 39: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Since all of above items require some measurement and test equipments and those equipments are not available in Indonesia the actual field work using such equipments will not be included in the Technology Transfer at present Instead of the actual field work the results of the related examinations and tests and the latest paper will be introduced so that the relevant staff can acquaint themselves with the examination and assessment methods and conduct such examinations andor tests when those equipments are available in Indonesia in the future

2 - 21 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 40: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

25 Current Status of JBIC Export Credit 251 Agreement on Export Credit Line

On November 26 2004 an agreement was reached between Japan Bank for International Cooperation (JBIC) and the Government of the Republic of Indonesia on the provision of an Export Credit Line totaling up to the amount of 275 billion Japanese Yen as follows

NR2004-42 November 26 2004

Credit Line for Indonesia

--Supporting Japanese Exports to Indonesias Power Sector-- 1 Japan Bank for International Cooperation (JBIC Governor Kyosuke Shinozawa) signed today

an agreement for a yen-denominated export credit line[1] totaling up to 275 billion yen with the Government of the Republic of Indonesia in Jakarta Indonesia

2 The proceeds of this credit line will be used for the purchase of power generation equipment

exported from Japan to rehabilitate the existing aging power facilities in Indonesia in view of the significant need for such work JBICs contribution to the countrys stable supply of power through the provision of this credit line will support the business operations of a number of Japanese firms operating in Indonesia

3 Promoting investment financed by both domestic and foreign sources is a major challenge for

Indonesia since investment will serve as a pillar sustaining stable economic growth To improve the countrys investment climate a stable supply of power is essential However rapidly growing power demand in Indonesia has raised concerns over the emergence of serious power shortages This is particularly true in the Java-Bali power system which serves the capital city of Jakarta and whose power demand is projected to increase 68 annually through 2010 Thus there are strong expectations that this project will address and ameliorate the tight power situation

4 JBIC has supported Indonesias power sector over many years not only by providing export

loans but also by combining multiple lending instruments including ODA loans Aside from these financing operations JBIC has been making comprehensive efforts to help Indonesia resolve the problems it is tackling in the power sector as well as steer power sector reform efforts in a desirable direction by engaging in consultations with the Indonesian government and other stakeholders

252 Basic Condition of Export Credit Line

The basic conditions and requirements of JBIC Export Credit Line provided to the Government of Indonesia are as follows

Final Report 2 - 22

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 41: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 25-1 Loan Condition of JBIC Export Credit Name of Loan Export Credit Line for Indonesiarsquos Power Sector

Country Indonesia

Borrower The Government of the Republic of Indonesia

Executing Agency PT Perusahaan Listrik Negara (Persero) (PLN)

Loan Amount 275 billion yen

Amount to be Approved 275 billion yen

Interest Rate OECD Guide Line Rate at the time of entering in an import and export contract of the equipment subject to this loan (Yen CIRR)

Term The term of the loan depends on the credit line agreement (CLA) as cited below and the detailed repayment method will be determined for each of CLA CLA Amount (billion yen) Terms 01 up to and excluding 05 5 years 05 up to and excluding 5 8 years Over 5 10 years

Final Date of Application for Contract Approval

No later than September 30 2006

Final Disbursement Date The final disbursement date is determined separately for each of CLA taking account of the final shipment date Provided that the final disbursement date for the whole of the loan amount shall be no later than September 30 2008

Loan Methods LC Switch Method or Reimbursement Method or Direct Payment Method

Requirement on ExportImport Contracts

Importer PT Perusahaan Listrik Negara (Persero)(PLN)

Eligible Goods and Services

Equipment and services shall be procured by PLN from Japan for the purpose of rehabilitation of the existing power generating facilities in Indonesia(Procurement from countries other than Japan may be eligible to the extent approved by JBIC)

Contact Amount and Currency

Currency In principle the contract price and the payment currency shall be in Japanese yen (US dollar is also acceptable)

Contract Address of JBIC International Financing Department I Division 1 (Tel 03-5218-3413)

Source Japan Bank for International Cooperation Translated by NEWJEC

253 Current Status of Export Credit Line Procedure in Indonesia

To use JBIC Export Credit Line an Application for Approval of Contract and Loan shall be submitted by the Government of Indonesia to JBIC together with a copy of a relevant export contract However as of November 2005 no application has been submitted by the Government of Indonesia The following is the outcome of the hearing from staff members of PLN made during the 1st field investigation by JICA Study Team in November 2005 (1) An application to use JBIC Export Credit Line was submitted by PLN to BAPPENAS

in around August 2005 However the process has been suspended by BAPPENAS Initially BAPPENAS has agreed to carry out rehabilitation of the existing power generation facilities in accordance with the General Agreement on JBIC Export Credit Line in line with proposals given by PJB and Indonesia Power for rehabilitation of 13

2 - 23 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 42: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

power stations BAPPENAS now withholds its approval on the ground that JBIC Export Credit Line procedure is not in compliance with the bidding regulations stipulated by the Indonesian Government

(2) According to the procedure of the Indonesian Government PLN forms a basic plan of a

project and submit it to BAPPENAS for approval After the approval is given by BAPPENAS the Ministry of Finance reviews it from a budgetary view point When the budget allocation to the project in question is determined by the Ministry of Finance the Ministry instructs PLN to proceed with bidding After bidding PLN negotiates with a successful bidder for establishing a contract including discussion to agree on the proposed export credit However in case of JBIC Export Credit Line the source of the export credit has been determined before the successful bidder is selected for which JBIC Export Credit Line procedure is considered to be in conflict with the bidding regulation in Indonesia and the BAPPENAS approval is not obtained

(3) Candidate projects of the 1st Export Credit Line agreed on November 26 2004 include

Muara Karang Thermal Power Plant Suralaya Thermal Power Plant Paiton Thermal Power Plant and Saguling Hydro Power Plant According to PLN the total estimated cost for rehabilitation for these 4 power plants has already exceeded US$ 250 million agreed in the General Agreement of November 26 2004 and therefore no other rehabilitation plan can be included in there PLN therefore expects provision of an additional Export Credit Line However since the procedure has been suspended on the side of Indonesia for the initial Export Credit Line of November 26 2004 no concrete rehabilitation plan has been determined for a future Export Credit Line PLN expects that some rehabilitation plan would be found by JICA Study Team for the further Export Credit Line

It is important to continue monitoring of the progress of processing within BAPPENAS and the Ministry of Finance

254 Export Credit Line Currently Planned by PLN

A rehabilitation plan of PLN for application to JBIC Export Credit Line which was disclosed to JICA Study Team during the 1st Field Investigation is as follows

(1) Muara Karang Thermal Power Plant Units No 4 and No 5 Output 422 MW (2 times 211 MW) Initial Commercial Operation Unit No 4 (1981) Unit No 5(1982) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab Phase I (US$ 112 Million) Phase II (US$ 36 Million) Proposed Rehabilitation Replacement air preheater (AH) and GRF etc

Final Report 2 - 24

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 43: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

(2) Suralaya Thermal Power Plant Units No 1 through No 4 Output 1680 MW (4 times 420 MW) Initial Commercial Operation Unit No 1 (1984) No 2 (1985) No 3 (1988) and No 4 (1989) Original Supplier Mitsubishi Heavy Industries Estimated Cost for Rehab US$ 201Million Proposed Rehabilitation Replacement 2nd superheater and reheater outlet etc

(3) Paiton Thermal Power Plant Units No 1 and No 2 Output 80625 MW (2 times 40325 MW) Initial Commercial Operation Unit No 1 (1994) Unit No 2(1993) Original Supplier Alstom and Toshiba Estimated Cost for Rehab US$ 44 Million Proposed Rehabilitation Replacement of labyrinth and modification of boiler etc

(4) Saguling Hydro Power Plant Units No 1 through No 4 Output 700MW (4 times 175MW) Initial Commercial Operation Units No 1No 2 (1985) Units No3No 4(1986) Original Supplier Toshiba Estimated Cost for Rehab US$ 23Million Proposed Rehabilitation Replacement of turbine runner and governor system etc Indonesia Power gives importance to Saguling Rehabilitation Project as a pilot project utilizing JBIC Export Credit Line and they have a strong wish to implement rehabilitation of the Soedirman Hydro Power Plant using the same scheme of JBIC if the Saguling rehabilitation is completed successfully in both technical and financial view points

As of July 2006 recommendation letters for Suralaya and Muara Karang were submitted from BAPPENAS to the Ministry of Finance (MFO) According to PLN information PLN intends to implement rehabilitationmodification works for Suralaya Power Station PLTU 3 amp 4 and Muara Karang Power Station PLTU 4 amp 5 by the next JBIC Export Credit Line which were excluded from the above 1st credit line due to the limitation of Indonesiarsquos budget

2 - 25 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 44: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

26 Confirmation of Environmental Regulation Relating for Power Sector 261 Background of Environmental and Social Consideration in Indonesia

Constitution of the Republic Indonesia (1945) does not stipulate the environment right but stipulates clause 33 in General Term for the control of natural resources that the land water and natural resources shall be managed and utilized by the Government from the viewpoint of the national welfare and that a production site posing threat to lives of citizens andor being of significance for the country shall be managed by the Government The first integrated national law on environment was the environment management law enacted in 1982 The law stipulates as follows (a) Right to maintain a healthy lifestyle (b) Right to participate in a process of environment management (c) Right to evaluate an action posing a serious effect on environment (d) Polluter-pays principle (e) Power to install an approval system for environment management and protection (f) Compensation for environment or pollution-related victim and restoration of

sustainable environment The Clause 16 stipulates the legal basis to carry out the environmental impact assessment After 1982 national laws and regulations on environment have been established and being developed by step by step The environment management law was revised significantly in 1977 aiming the following issues (a) Tighter environmental standard for business activities (b) Strengthened penalty for environment pollution (c) Strengthened regulation on environment dispute settlement

On the other hands the Republic of Indonesia participated in UN Conference on Environment and Development (UNCED) in 1992 and has approved and ratified the almost global treaties discussed in the Riorsquos Conference5 Regarding the environmental impact assessment in Indonesia Environment Impact Agency which has been integrated into the Ministry of Environment (BAPEDAL) was established in 1993 to assess business activities over plural Ministries and developed the environmental impact assessment system Regulation on Environmental Impact Assessment was revised in 1997 in line with the publication of Environmental Management Law Furthermore all

5 Referred to ldquoGlobal and Human Environment Forum 1998rdquo

Final Report 2 - 26

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 45: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

environmental assessment matters were placed under Environmental Impact Assessment Committee controlled by BAPEDAL in 2000 The Bureau of Environmental Management Committee (BAPEDALDA) belonging to a provincial or a sub-provincial government has had power to conduct and supervise environmental impact assessments in line with the decentralization since 2000 In case that the project covers plural administrative areas MOE (Ministry of Environment) is the responsible authority relating to Environmental Impact Assessment at the present because of integration of BAPEDAL to MOE

262 Institution of Environmental and Social Consideration and Legal Framework 2621 Related Laws and Regulations

The related laws and regulations in Indonesia to be followed for the implementation of rehabilitationmodification and repowering plans proposed by the Study are shown below bull Act of the Republic of Indonesia concerning Environmental Management (No23 1997) bull Government Regulation of the Republic of Indonesia concerning Environmental Impact

Assessment (No27 1999) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Guidelines for AMDAL Document Evaluation (Decree No40 2000) bull Decree of the State Minister for Environment of the Republic of Indonesia concerning

Community Involvement and Information Openness in the Process of Environmental Impacts Assessment (Decree No8 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Preparation of Environmental Impacts Assessment Study (Decree No9 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning Guidelines for Work System of Evaluator Committee for Environmental Impact Assessment (Decree No40 2000)

bull Decree of the State Minister for Environment of the Republic of Indonesia concerning the Types of Business andor Activity Plans that are required to be completed with the Environmental Impact Assessment (Decree No17 2001)

The Ministry of Energy and Mineral Resources (MEMR) which is responsible for Power Sector and Energy Sector has developed the practical guideline on environmental impact assessment relating to Power Sector and Energy Sector in Indonesia (Decree of MEMR No1457K28MEM2000) The guideline instructs the required environmental impact assessment for the business-category basis The required environmental impact assessment relating to Power Sector is shown in the following table According to the table below rehabilitation and modification works such as replacement of power facilities are not required environmental

2 - 27 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 46: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

impact assessment

Criteria about revise of AMDAL RKL and RPL in Energy Sector Changing activity Previous AMDAL Revised AMDAL New AMDAL

Change of Location times times - Inside

times times - Outside Change of design times times - Significant change

times times - Not significant change (bigger than previous

program or significant impact) Change of capacity

(bigger than previous program)

(smaller than previous program)

- Previous program times

(not significant impact)times - Improvement program Change of material times times - Dangerous material (B3) times times - Not B3 Change of facilities times times - Significant times times - Not significant

X X Change of sampling or monitoring point or Management

Note O means applicable and X means not applicable

Source Decree of MEMR No1457K28MEM2000

2622 Execution Agency for Environmental and Social Consideration for the Proposed Plans

The Environmental and social consideration in Indonesia shall be carried out by a project ownerexecutor Therefore the environmental and social consideration relating to rehabilitationmodification and repowering plans proposed in the Study shall be done by the generation companies which are the owner of the power generation facilities MEMR a governing legal authority of Energy Sector has environment sectionsteams for each energy related activities For example Deputy Director of Electricity Environmental Protection under the Director General Electricity and Energy Utilization is one the personnel in charge of environmental issues for Power Sector (refer to Figure 26-1) Environment sections teams fills a role of giving instructions and advices to power enterprises (power generation companies and IPP) relating to environmental issues including KA-ANDAL and AMDAL to be submitted to BAPEDALDA Environmental issues relating to rehabilitation plan for a power station developed in the FS stage are accepted by the Deputy Director of Electricity Installation and Safety under the Director General Electricity and Energy Utilization

Final Report 2 - 28

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 47: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities

(1) Power Generation Facilities required EIA

The AMDAL relating to power facilities are evaluated and approved by the AMDAL Evaluating Committee belonging to the provincial government (BAPEDALDA)6 such as West Java Central Java and so on However if a power development project covers plural provinces the central government evaluates and approves the AMDAL

In accordance with the Decree of the State Minister No 17 2001 power generation projects subject to Environmental Impact Assessment are thermal power stations with an output of 100 MW or above and hydro power stations with a dam height of 15 meters or higher or with reserve area of 200 ha or greater or with an output of 50 MW or above

(2) Procedure for EIA

The procedure for EIA stars by a project announcement on a newspaper basically in a city andor on a billboard in a townvillage by a project executor The timing of announcement is prior to the commencement of Feasibility Study After an announcement the execution of environmental impact assessment is explained to the involved communities and residents and comments raised in the explanation meeting are incorporated into the Environmental Impact Assessment Plan (KA-AMDAL) KA-AMDAL shall be revised until the KA-ANDAL obtains consensus by the involved community and residents KA-AMDAL shall include project description scope of works investigation area and methods and analysis methods and so on

The procedures for Environmental Impact Assessment in Indonesia require project owners to firstly submit project plans to relevant authorities of the Indonesian government The degree of environmental impact to be caused by a planned project is discussed in the Environmental Impact Committee in the relevant authorities The Environmental Committee also decides the necessity of Environmental Impact Assessment

After obtaining consensus a project executor submits a KA-ANDAL to the relevant agency (MOE or a provincial governor or a city mayor) through the Environmental Impact Assessment Secretariat to get the approval by the Environmental Impact Assessment Committee The Committee might request the revision of KA-ANDAL if necessary (refer to Figure 26-2)

After the KA-ANDAL plan is approved a project ownerexecutor is required to submit an Environmental Impact Assessment Report (ANDAL) Besides the ANDAL a project ownerexecutor is also required to submit an Environmental Management Plan (RKL)

6 Source ldquoPUSAT PENGEMBANGAN DAN PENERAPAN AMDAL INFO AMDALrdquo July 2001 No03

2 - 29 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 48: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

covering activities the relevant organization budget and other information relating to reducing the environmental impact as well as an Environmental Monitoring Plan (RPL) describing how to monitor the changes in the environment to the relevant agency through the Environmental Impact Assessment Secretariat to get approval (refer to Figure 26-3)

Even when an Environmental Impact Assessment is unnecessary a project ownerexecutor is required to prepare an Environmental Management Plan (UKL) and an Environmental

7Monitoring Plan (UPL) Whether UKL and UPL are required or not depends on the decision by BAPEDALDA PJB has the UKL and UPL reports for the repowering (100 MW or less) of the existing power stations and this repowering project is not required an Environmental Impact Assessment

In this way the Environmental Impact Assessment Committee determines whether Environmental Impact Assessments is necessary or not for a project However when a project is accompanied with construction even if Environmental Impact Assessment is not required Environmental and Social Consideration - such as Environmental Management Plan and implementing the monitoring - will still be required

PJB and IP which operate and control power stations have obtained ISO14001 certification and they conduct environmental monitoring in line with the ISO 14001 Their monitoring is conducted every three months and will continue for as long as their power stations continue to operate The IP head office has established the computerized data base for the past environmental monitoring data in June 2006

MEMR provides the following information (a) If the capacity of repowering plan proposed in the Study is less than or equal to the

capacity described in the original AMDAL only a revised AMDAL is required unless a new AMDAL is required

(b) AMDAL shall be submitted to the central government if a project covers plural provinces unless the relevant provincial government

(c) The timing of submittal of AMDAL of which preparation has started since the completion of FS is prior to the start of DD preferably to get approval or the early stage of DD at the latest

(d) If a project is not commenced the construction within three (3) years from the date of approval of AMDA the AMDAL is expired basically

On the other hands PJB provides the following information relating to the duration of AMDAL from the preparation of AMDAL until the approval of AMDAL referring to a actual project (a) Revised AMDAL took only 3 months to 4 months from the preparation until the

7 In Indonesia Environmental Management Plan and Environmental Monitoring Plan attached to EIA (AMDAL) are called as RKL and RPL

Final Report 2 - 30

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

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SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

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A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

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EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 49: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

approval because the revised AMDAL was prepared by utilizing the current monitoring data and the original Environmental Management Plan

(b) New AMDAL took 6 months to 9 months until the submittal of the final AMDAL and 4 months to 9 months to get approval and totally 1 year to 15 years

(c) During the above 6 months to 9 months public hearing was held twice and exchanged the Agreement between PJB and involved residents NPO and NGO

264 Environmental Quality 2641 Air Quality Related

Environmental standard for air quality for thermal power stations except for coal-fired thermal power stations is shown in Table 26-1 Environmental standard for emission gas from factories are developed according to type of business and Table 26-2 shows the case of a thermal power station The air quality standard was established in 1988 and revised in 1999 The emission gas standard was established in 1995 and revised in 2000

2642 Water Quality Related

Land water quality standard except the underground water is shown in Table 26-3 and sea water quality standard is shown in Table 26-4 Effluent standard applicable to overall factories is shown in Table 26-5 The land water quality standard was established in 1990 and the sea quality standard was established in 2004 The effluent standard was established in 1991 and 15 kind of standards were categorized according to the business activities of overall factories Six (6) categories were added in 1995 and new restrictions were added in 1999 The environmental standard for sea water quality established in August 2004 has not yet obtained the common census among the related agenciesparties For example the Ministry of Environment makes comments that the difference temperature for sea water should be within 2 degree C The discussion and negotiation between MOE and project executors have been continued because it is difficult to practice the difference temperature within 2 degree C actually The comment made by MEMR is ldquoEffluent impact on the specified sea area shall be lower than the restricted sea water temperaturerdquo and MEMRrsquos comment seems to be reasonable from the viewpoint of environmental standard for water quality According to the draft AMDL for Grati Block 3 prepared in December 2004 diffusion calculation at water discharge was conducted as difference sea water temperature of 692

respectively and those not attached to EIA are called as UKL and UPL

2 - 31 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 50: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

degree C The calculation results indicated that sea water temperature would come down without delay after discharge and become 4 degree C and 25 degree C at the sea-level and at detached area respectively The final AMDAL was supposed to the same content of the draft AMDAL and approved by BAPEDALDA belonging to the East Java government in March 2005 As far as the Grati case BAPEDALDA seemed to have same opinions with those of MOE

2643 Others

Environmental standards for noise vibration and odor are shown in Table 26-6 Table 26-7 and Table 26-8 The above standards were established in 1996

265 Stakeholder

Involved stakeholders relating to the proposed plans seem to be as follows (a) Beneficiaries ndash Affected Groups (whole resident in Java and Bali islands)

- Residents and communities in Java and Bali - Provincialsub-provincial governments in Java-Bali - Industry sector commercial sector and other private sectors

(b) Public Administration

- Responsible agency MEMR - Provincial government Java- Bali region and provincial governments - Executor PLN PJB and IP - Environmental administration MOE BAPEDALDA in Java-Bali region

(c) Supporting Organization JICA

Final Report 2 - 32

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 51: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Figure 26-1(1) Organization Chart for Ministry Energy and Mineral Resources

2 - 33 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

i

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 52: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

DEP

UTY

DIR

ECTO

R

OF

SUPP

ORT

ING

B

USI

NES

S

Ir S

ubya

ntor

o S

MT

Figure 26-1 (2) Organization Chart for MEMR (Environmental Section)

DIR

ECTO

R G

ENER

AL

ELEC

TRIC

ITY

AN

D E

NER

GY

U

TILI

ZATI

ON

Ir

JPu

rwon

o M

SE

E

DIR

ECTO

R O

F EL

ECTR

IC

POW

ER E

NG

INEE

RIN

G A

ND

EN

VIR

ON

MEN

T Ir

John

ni S

iman

junt

ak

DEP

UTY

DIR

ECTO

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OF

ELEC

TRIC

ITY

SA

TND

AR

DIZ

ATIO

N

Ir

BH

Pas

arib

u M

M

DEP

UTY

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ECTO

R

OF

ELEC

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ITY

A

ND

SA

FETY

Ir P

ahal

a Li

ngga

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

VIR

ON

MEN

TAL

PRO

TECT

ION

Ir

Elly

dar B

aher

DEP

UTY

DIR

ECTO

R

OF

ELEC

TRIC

ITY

EN

GIN

EER

S

Ir A

rief I

ndar

to M

M

SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

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LEC

TRIC

ITY

PO

WER

PLA

NT

Ir

Nin

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SEC

TIO

N O

F EN

VIR

ON

MEN

TAL

PRO

TECT

ION

FO

R E

LEC

TRIC

ITY

TA

RA

NSM

ISSI

ON

LIN

E

Ir A

gus S

ufiy

anto

(As o

f Aug

ust 3

200

6)

Final Report 2 - 34

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 53: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Public Institution Initiator

Announcement of Business Plan and

Activity

Announcement of Preparation for Compilation

of AMDAL

Suggestion Opinion and Comments

Consultancy

Compilation of

KA - ANDAL

Assessment of KA -ANDAL by Commission

(Max 75 days)

(Source ldquoINFO AMDALrdquo May 2003 Edition 12th MEMR)

Figure 26-2 Involvement Procedure for Public Process of AMDAL

Suggestion Opinion and Comments

Compilation of ANDAL

RKL RPL

Assessment of ANDAL RKL RPL by Commission

(Max 75 days)

Suggestion Opinion and Comments

Eligibility Decision of Environment Head of

BAPEDALDA Government

2 - 35 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 54: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Institution Evaluator Committee Initiator

Submit KA-ANDAL

Evaluation of KA-ANDAL

Decision of approval of KA-ANDAL

Instruction of Compiling

ANDAL RKL RPL

Assessment of ANDAL RKL RPL

Compilation of ANDAL

RKL RPL

Confirmation of submitting KA-ANDAL

Revise

Confirmation of submitting AMDAL RKL RPL

Revise Decision of approval of AMDAL RKL RPL

Eligibility Decision of the project

Approval of the project

(Source Kajima Corporation and Yachiyo Engineering 2004)

Figure 26-3 Procedure for Implementation of Environmental Impact Assessment

Final Report 2 - 36

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 55: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-1 Ambient Air Quality Standards Items Averaging Time Limitation Values

900 μgNm3SO 1 hr 2

24 hrs 365 μgNm3

1 year 60 μgNm3

CO 1 hr 30000μgNm3

24 hrs 10000 μgNm3

400 μgNm3NO 1 hr 2

24 hrs 150 μgNm3

1 year 100 μgNm3

O3 1 hr 235 μgNm3

1 year 50 μgNm3

H 3 hrs 160 μgNm3

PM10 (Particle size lt 10 μm) 24 hrs 150 μgNm3

PM25 (Particle size lt 25 μm) 24 hrs 65 μgNm3

1 year 15 μgNm3

Soot and Dusts 24 hrs 230 μgNm3

1 year 90 μgNm3

Pb 24 hrs 2 μgNm3

1 year 1 μgNm3

Dust Fall 30 days 10 tonkm2month (residential area) 20 tonkm2month (industrial area)

Fluoride 24 hrs 05 μgNm3

90 days 3 μgNm3

Flour Indeks 24 hrs 40 μg100 cm3 (Filter dimensions)

Chlorine amp Clorine Dioxide 24 hrs 150 μgNm3

Sulphat Indeks 30 days 1 mgSO3100 cm3

Table 26-2 Emission Gas Standards Items Unit Limit Concentration

Soot and Dusts mgm3 150 3SO mgm 750 2

3NO mgm 850 2

Opacity 20 Notes 1) Soot and dust concentration are converted based on an oxygen concentration of 3 2) Amounts of exhaust gas are amounts of dry gas at 25degC and under 1 atmospheric

pressure 3) Opacity is measured in a practical method It is converted based on the soot and

dust concentration 4) The power station must satisfy the reference value on 95 of the days during three

months when the power station operates normally

2 - 37 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 56: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-3 Ambient Water Quality Standards Class

Items Unit I II III IV

Physical Items

Temperature degC plusmn 3 plusmn 3 plusmn 3 plusmn 3

DSS MgL 1000 1000 1000 2000

SS MgL 50 50 400 400

Chemical Items

PH mgL 6 - 9 6 - 9 6 - 9 5 - 9

BOD mgL 2 2 6 12

COD mgL 10 25 50 100

DO mgL 6 4 3 0

T-P mgL 02 02 1 5

NO3-N mgL 10 10 20 20

NH3-N mgL 05 (-) (-) (-)

As mgL 005 1 1 1

Co mgL 1 (-) (-) (-)

Ba mgL 1 (-) (-) (-)

B mgL 1 1 1 1

Se mgL 001 005 005 005

Cd mgL 001 001 001 001 6+ Cr mgL 005 005 005 1

Cu mgL 002 002 002 02

Fe mgL 03 (-) (-) (-)

Pb mgL 003 003 003 1

Mn mgL 01 (-) (-) (-)

Hg mgL 0001 0002 0002 0005

Zn mgL 005 005 005 2

Chloride mgL 600 (-) (-)

Free Ammonia mgL 002 002 002 (-)

Fluoride mgL 05 15 15 (-)

NO2-N mgL 06 006 006 (-)

Sulfated Compound mgL 400 (-) (-) (-)

Effective Chlorine mgL 003 003 003 (-)

H2S mgL 0002 0002 0002 (-)

Microorganisms

Fecal Coliform 100 ml 100 1000 2000 2000

Total Coliform 100 ml 1000 5000 10000 10000

Final Report 2 - 38

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 57: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Class Items Unit

I II III IV

Radioactive Materials

Total Beta-Ray BqL 01 01 01 01

Total Alpha-Ray BqL 1 1 1 1

Organic Materials

Oil μgL 1000 1000 1000 (-)

Methlene Blue Active Substances μgL 200 200 200 (-)

Phenol μgL 1 1 1 (-)

BHC μgL 210 210 210 (-)

Ardrin μgL 17 (-) (-) (-)

Chlordane μgL 3 (-) (-) (-)

DDT μgL 2 2 2 2

Heptachlor μgL 18 (-) (-) (-)

Lindane (γ-BHC) μgL 56 (-) (-) (-)

Methoxychlor μgL 35 (-) (-) (-)

Endrin μgL 1 4 4 (-)

Toxaphene μgL 5 (-) (-) (-)

Notes 1) Class I covers the quality of water available for drinking without treatment 2) Class II covers the quality of water available for raw water for drinking

3) Class III covers the quality of water available for fisheries and livestock farming 4) Class IV covers the quality of water available for agriculture small business in urban areas industry and

hydropower generation

2 - 39 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 58: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-4 Ambient Sea Water Quality Standards Area

Biota Items Unit Port Recration Value Remarks Physical Items

Coler PtCo 30Transparency m gt3 gt6 gt5(coral) lt10 (euphotic depth) - (mangrove) gt3 (sea-bed)Odor null null naturalTurbidity NTU 5 lt5SS mgL 80 20 20 (coral) 80 (mangrove) 20 (sea-bed)Rubbish null null null

natural natural naturalTemperature 28-30 (coral) 28-32 (mangrove)(lt +2) (lt +2) (lt +2) 28-30 (seaweed bed)

Oil content null null null Oil content Chemical Items 65 - 85 70 - 85 70 - 85 lt 02pH

Salinity natural natural natural 33-34 (coral) lt5(seasonal

average)lt5(seasonal

average)lt5(seasonal

average)34 (mangrove)

33-34 (seaweed bed)(gt80-90oxygen

saturation)DO mgL gt5 gt5 gt6

BOD mgL 10 205

mgL 03 null 03NH3-N PO4-P mgL 0015 0015

mgL 0008 0008 0002NO3-N CN mgL 05 005 H2S mgL 003 null 00002 Pesticide (001mgL)Hydrocarbon mgL 1Phenol mgL 0002 null 0002PAH mgL 0003 0003PCB mgL 001 null 001Surfer mgL MBAS 1 0001 1Fat and Oil mgL 5 1 1Pesticide mgL null 001TBT mgL 001 001

Heavy Metal Hg mgL 0003 0002 0001 0001

6+Cr mgL 0002 0005 005 As mgL 0025 0012 005 Cd mgL 001 0002 0001 0002Cu mgL 005 005 0008 0005Pb mgL 005 0005 0008 0005Zn mgL 01 0095 005 0015Ni mgL 0075 005

Microorganisms Fecal Coliform 100ml 200Total Coliform 100ml 1000 1000 1000Bacteria 100ml nullPlankton 100ml no bloom

Radioactive Materials Intensity of Radioactive Ray BqL 4 4

Final Report 2 - 40

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 59: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-5 Wastewater Standards Class Items Unit I II

Physical Items

Temperature degC 38 40

DSS mgL 2000 4000

SS mgL 200 400

Chemical Items

PH 60 - 90 60 - 90

Fe mgL 5 10

Mn mgL 2 5

Ba mgL 2 3

Cu mgL 2 3

Zn mgL 5 10 6+ Cr mgL 01 05

T-Cr mgL 05 1

Cd mgL 005 01

Hg mgL 0002 0005

Pb mgL 01 1

Sn mgL 2 3

As mgL 01 05

Se mgL 005 05

Ni mgL 02 05

Co mgL 04 06

Cn mgL 005 05

H2S mgL 005 01

F mgL 2 3

Cl mgL 1 2 2

NH3-N mgL 1 5

NO3-N mgL 20 30

NO2-N mgL 1 3

BOD mgL 50 150 5

COD mgL 100 300

Methylene Blue mgL 5 10

Phenol mgL 05 1

Oil from Organism mgL 5 10

Mineral Oil mgL 10 50

Radioactive Materials mgL None None

Note Class I covers plants with advanced facilities for drainage Class II covers plants with simple facilities for drainage

2 - 41 Final Report

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder
Page 60: REPUBLIC OF THE PHILIPPINESopen_jicareport.jica.go.jp/pdf/11838976_01.pdf · 2006-12-27 · November, 2006 LETTER OF TRANSMITTAL Mr. Tadashi Izawa Vice President Japan International

The Study on the Improvement Measures for Electric Power Generation Facilities in Java-Bali Region in the Republic of Indonesia

Table 26-6 Noise Level Standards

Note By a regulation of Ministry of Communications

Table 26-7 Vibration Level Standards Vibration Level (10-6m) Frequency

(Hz) No impact Affect Not Comfortable Significant 4 lt100 100-500 500-1000 gt1000 5 lt80 80-350 350-1000 gt1000

63 lt70 70-275 275-1000 gt1000 8 lt50 50-160 160-500 gt500

10 lt37 37-120 120-300 gt300 125 lt32 32-90 90-220 gt220 16 lt25 25-60 60-120 gt120 20 lt20 20-40 40-85 gt85 25 lt17 17-30 30-50 gt50

315 lt12 12-20 20-30 gt30 40 lt9 9-15 15-20 gt20 50 lt8 8-12 12-15 gt15 63 lt3 6-9 9-12 gt12

Table 26-8 Odor Standards Items Unit Value

Ammonia ppm 2Methyl Mercaptan ppm 0002H2S ppm 002Methyl Sulfide ppm 001Vinyl Benzene ppm 01

Noise Level Zone dB(A) Land Use Form

Resident Area 55Commercial Zone 70Office 65Green Space 50Industrial Area 70Public Facilities 60Recreation 70Others

Airport Station Port 70 Cultural Facility 60Activity Form Hospital 55 School 55 Musalla 55

Final Report 2 - 42

  • COVER
  • PREFACE
  • LETTER OF TRANSMITTAL
  • Abbreviation Table
  • TABLE OF CONTENTS
  • 1 General
    • 11 Background
    • 12 Purpose of the Study
    • 13 Study Area and Scope of Work
      • 131 Study Area
      • 132 Scope of Work
          • 2 Recognition of Current Situation in Java-Bali Region
            • 21 Confirmation of Power Development Plan
              • 211 Power Development Plan
              • 212 Transmission System Expansion Plan
                • 22 Confirmation of Fuel Supply Plan
                  • 221 Fuel Oil Prices
                  • 222 Natural Gas
                  • 223 Additional Efforts of Gas Supply to Power Plants in Java-Bali Region
                    • 23 Confirmation of Financial Status of PLN and Power Generation Companies
                      • 231 PLN
                      • 232 PJB
                      • 233 Indonesia Power (IP)
                        • 24 Review of Collected Data and Information Relating to Technology Transfer
                          • 241 Thermal Power Station
                          • 242 Hydropower Station
                            • 25 Current Status of JBIC Export Credit
                              • 251 Agreement on Export Credit Line
                              • 252 Basic Condition of Export Credit Line
                              • 253 Current Status of Export Credit Line Procedure in Indonesia
                              • 254 Export Credit Line Currently Planned by PLN
                                • 26 Confirmation of Environmental Regulation Relating for Power Sector
                                  • 261 Background of Environmental and Social Consideration in Indonesia
                                  • 262 Institution of Environmental and Social Consideration and Legal Framework
                                  • 263 Environmental Impact Assessment (EIA) Relating to Power Generation Facilities
                                  • 264 Environmental Quality
                                  • 265 Stakeholder