Covid-19 Pandemic to Take Away US$ 13.1 Billion from PLTU Projects

Summary

The coal-fired power plant projects in Indonesia are not immune to the Covid-19 pandemic. Global Energy Monitor (GEM) predicted that the investment in such projects could potentially suffer from US$ 13.1 billion of losses since the construction and operation of 11 coal-fired power plants (PLTU) got halted because of the pandemic. The number comes from the model developed by the International Energy Agency (IEA), calculating the investment losses over the average capital costs.

The loss projection is a result of capital outlay increases because of labor and supply chain disruptions during the Covid-19 pandemic. Trend Asia’s Program Director, Ahmad Ashov Birry, said that such a force majeure was enough for the government to stop the projects. “Not only can it avoid long-term economic loss, but also protect the people,” he explained in a written statement on Wednesday (3/25).

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