Ann: Results of EGM , page-4

In general terms,there is some preparation still with the wording and clauses of the PPA documents that will be used for the 11 or 15 projects that are currently waiting for PPAs, even though most of the basics have been supposedly agreed since last July or so.. but you never know, it just might happen inaminnet so long as PLN can get their 14% rate of return :)

This is on top of consideration of the merging of the two entities that have traditionally overseen the process (and sorting out their differences of opinion on the PPA terms, and also the transfer of overall responsibility from the mining ministry to the energy ministry which is already under turmoil from the disbandment of BPMigas and the absorption of those responsibilities.

Just a few eyes to be crossed and tees dotted yet, that is patience required while the wheels think about turning.

The closer to an election year this becomes, the less likely any bold moves will be made. SBY effectively goes into caretaker mode during the last year of his term as he cannot stand again and any moves made can be undone by the next guy.

I hope that little reality check isn't too hard to digest.

On a brighter note, PLN and Pertamina finally agreed on the tariffs for 9 Pertamina geothermal projects that have been on hold for some time.

and there is this hurdle as well :- from the Jakarta Post. "On the financing side, one key element though is that investors are demanding government guarantees for power purchase agreements developers need to sign with PLN. So while there have been given assurances and guarantees and recently an increase in power pricing, there still is some concern about the financial strength of PLN to be paying for the power from geothermal projects."

There it is, it is all about the population's readiness to accept the cost of energy and that is tied to regional productivity and energy consumption.