The Indonesian government requires an investment of USD 14 billion, equivalent to IDR 226.58 trillion, to meet Sulawesi's electricity needs by 2030. This investment includes USD 10.7 billion for power plants, USD 2.3 billion for transmission, and USD 1 billion for substations. The primary demand in Sulawesi is for smelter electricity, which is expected to reach 11,139 MW by 2030. Minister of Energy and Mineral Resources Arifin Tasrif highlighted the significant energy demands of smelters, stating that a 4,500-hectare smelter area in Sulawesi alone requires nearly 7 GW of electricity. The current demand of 20 GW for smelters is being met through coal-fired power plants (PLTU). However, the government aims to transition to cleaner energy sources. To reduce coal dependency, the government plans to switch to gas. By 2027, 337 MMSCF of gas from the Donggi Senoro contract, ending that year, will be used for a new Wellhead Gas Power Plant (PLTGU) with a capacity of 1,800 MW. Additionally, 500 MMSCFD of gas from the ENI Muara Bakau field in the Makassar Strait will support a new PLTGU in Palu with a capacity of 2,650 MW. Electricity from these plants will be transmitted via a 500 kV line to supply smelter clusters in South Sulawesi (Huadi), Southeast Sulawesi (Pomala-Ceria and Konawe-Morowali).
Arifin emphasized that the plan includes drawing gas from Kalimantan and the Makassar Strait, constructing gas power plants in Sulawesi, and enhancing the transmission network. The end of the Donggi Senoro LNG export contract will enable the use of this gas domestically, supporting carbon reduction efforts in the smelting industry. With competitive gas pricing at approximately USD 6 per MMBTU and transmission toll fees of 3.88 cUSD/kWh, the electricity price of around 11 cUSD/kWh is deemed competitive. This strategic investment aims to ensure a stable power supply for Sulawesi's growing smelter industry, fostering economic growth and supporting environmental sustainability.
