Dumai refinery to cut costs by 25% after getting PLN electricity supply

State-owned energy holding company Pertamina hopes to cut the operational costs of its Dumai
refinery in Riau (RU II) with a sales and purchase agreement (PJBL) between Pertamina and
state-owned electricity company PLN that took effect on Thursday.

Under the agreement, RU II would get its electricity from PLN. Until now, RU II has been
getting its electricity from fuel-powered generators.

The memorandum of understanding (MoU) for the PJBL was inked on Aug. 2, 2018 in Jakarta
by Pertamina’s refinery director Budi Santoso Syarif and PLN corporate planning director Syofvi
Felienty Roekman.

RU II general manager Nandang Kurnaedi said another benefit of the agreement was the
refinery's elimination of the need for Solar-branded biodiesel to generate electricity. “The diesel
fuel could be used for more productive activities,” he said in a press statement on Friday.

Under the agreement, Pertamina could cut the operational costs of RU II, which currently meets
20 percent of the total demand for fuel in the country, by 25 percent to Rp 1.6 billion per month
by ceasing its use of generators.

“PLN has prepared a special measure to provide a stable electricity supply from two main
substations in Pelintung and Purnama,” said PLN Riau and Riau Islands senior manager Busran
La Bintang . (bbn)