PT Freeport Indonesia Activity Impacts on Urumuka Power Plant

By : Aldo Bella Putra | Wednesday, July 26 2017 - 09:23 IWST

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INDUSTRY.co.id - Jayapura - Head of the Department of Energy and Mineral Resources (ESDM) of Papua Province Bangun Manurung assessed the sustainability of PT Freeport Indonesia's activities affecting the Urumuka hydroelectric development plan in Mimika Regency.

"If it is clear that the new (Freeport permit) investors are willing to enter, if there is no certainty, the bank also does not want to fund, there is no funder for this very big project," he said in Jayapura on Wednesday (25/1/2017).

Manurung, as quoted by Antara, mentioned that it is related to the mining permit issue of PT Freeport Indonesia, which is currently in the process of transferring from Contract of Work (KK) to Special Mining Business License (IUPK).

He revealed that there are already investors who are interested to build the Urumuka hydropower plant, but if Freeport's permits under the Contract of Work will only end in 2021, investors will be more cautious until there is long-term certainty.

"If we build energy, we will have investors who want to build it, and there will be MoU with BUMD to build the power plant in Urumuka." We will see if Freport has extended the IUPK until 2041, he is the main player," he said.

Manurung explained by the issuance of Government Regulation (PP) number 1 of 2017 regarding the fourth amendment to Government Regulation Number 23 of 2010 regarding the implementation of mineral and coal mining business activity, the discussion of IUPK Freeport extension can be done.

According to him, in the process of discussing it, many things will be discussed by the central government with Freeport, and it can be very decisive for the development in Papua, including the Urumuka Power Plant which can bring many changes, especially for Mimika.

"Once there is a PLTA, do not invite investors, they will come alone, if it starts, it will be a big change for Papua," he said.

He also mentioned the potential energy that can be generated from the Urumuka River is very large, can reach 1300 MW.