HIGHLY QUALIFIED CONTRACTOR TO SUCCEED

35 GW POWER PROJECT

Aldi Erzanuari, S.ST 93151259ZY

Arif Majiid Nusa Pratama, A.Md 93161837ZY

PT PLN (Persero) Wilayah Suluttenggo AP2B Sistem Minahasa

Jalan Lingkar Timur (Kaaten), Tomohon, North Sulawesi
Phone. (0431) 355004
E-mail : aldi.erzanuari@pln.co.id, arif.pratama2@pln.co.id

ABSTRACT

There are 8 points that have already been suggested by The 7 th President of the
Republic of Indonesia to succeed 35 GW power project. One of those points is
how to choose a highly qualified contractor as the main component in 35 GW
power project. The procurement of 35 GW power project must be transparent to
all contractors without any group or personal interest who wants to take
advantage of it. To get a highly qualified contractor, there are 5 points that must
be noticed when the procurement is being held. The first point is that the PLN as
the Electrical State Company must select the contractor who has already got the
letter of business entities (SBU) accredited by Directorate of General for
Electricity (DJK). The second point is the human resources of the contractor. The
bigger the experts of the contractor, the faster the project can be completed. The
third point is the background of the contractor. PLN must select the contractor
who has a good background and history to avoid a failed project. The fourth point
is the financial health of the contractor. PLN must examine the financial capital,
the tax, and the debt to get a contractor which has a good financial system. The
last point is the project equipment. The project equipment must have been
certified and calibrated. If the five points have already been enacted by PLN, the
35 GW power project will get a qualified contractor and will have finished on
schedule without any project failure.

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1. INTRODUCTION
The governments 35 Gigawatt electricity program is not a target but a basic
need to ensure that Indonesia continues progressing. The national electricity
demand is currently growing at a rate of around 8.1 % per year. If the government
will not execute the 35 Gigawatt electricity program, Indonesia will have power
crisis in the future. One of the main components in 35 Gigawatt power project is a
contractor who builds new power plants, new power transmissions, and new
substations. PLN as an Electrical State Company can speed up the 35 Gigawatt
power project with the best quality and result, if the qualified contractors
participate in this power project.

Table 1 The National Electricity Demand

2. GOAL
To succeed the 35 Gigawatt power project based on The Electricity
Procurement Business Plan (RUPTL) by using a highly qualified contractor.
3. ANALYSIS
There are several requirements that PLN must be considered in order to
select a highly qualified contractor.
a. Competency
A competency can be described as the combination of skills, experience
and knowledge. It often serves as the basis for skill standards that specify
the level of knowledge, skills, and abilities required for success in the

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 workplace as well as potential measurement criteria for assessing
competency attainment. The competency focuses on how results are
achieved rather than merely the end resut. The contractor who participate
in 35 Gigawatt power project must have The Letter of Business Entities
(SBU) which has already been accredited by Directorate General for
Electricity (DJK). The purpose of The Letter of Business Entities (SBU) is
to classify the proficiency of the contractor.

Table 2 The Classification of the Letter of Business Entities (SBU)

b. Human Resources
Many human resource professionals are employing a competitive
competency model to strengthen nearly every facet of talent management
from recruiting and performance management. A contractor cannot
produce and develop superior performers without first identifying what
superior performance is. The bigger the number of experts who have
already been certified, the more qualified the contractor. There are two
types of personal certification based on the grade of contractor. There are
Certificate of Expertise (SKA) and Certificate of Competence (SKT).

Table 3 The Minimum Level of Certification based on Contractors Grade

Grade Personal Certification
Certificate of Competence is for field
1-4
engineer
Certification of Expertise (Beginner) is
5
for field engineer
Certification of Expertise
6
(Intermediate) is for site manager
Certificate of Expertise (Advanced) is
7
for site manager or higher

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c. Background
The background of contractor is absolutely important to find out how well
the result of the previous project. If the result of previous project was good
without any problems, it could be classified that contractor had a good
background. There are 3 points that PLN as an Electrical State Company
must be considered.
1) Experience in power project
The contractor who has an experienced in power project has a highly
skilled in technical problems and non-technical problems. If there is a
problem while doing project, the experience contractors know how to
solve the problem based on their experiences rather than the beginner
contractors. On the other hand, PLN can speed up the 35 Gigawatt
project which are handled by the experience contractors.
2) Review the previous project
Reviewing the results of the previous projects are absolutely important
to consider the quality of the contractors. If they have a good
background and a good reputation, they are able to participate in 35
Gigawatt power project.
3) Legal background
To avoid an illegal Letter of Business Entities (SBU), the serial number
of the letter must be verified on the publishers website. If the serial
number of it is unlisted, it can be concluded that the SBU is an illegal.
So that the contractor will be banned by PLN.
d. Finance
There are 3 aspects that PLN must be paid attention about the financial of
the contractor. There are a financial capital, a tax, and a debt.
1) Financial Capital
The financial capital is one of the important thing to classify the grade
of the contractor whether it is suitable of the project fund or not. If the
contractors capital is not suitable to the project fund, the contractor
will be eliminated by PLN.
2) Tax
If there is a contractor who has an accrued tax, the contractor will get
punishment according to Tax Law. The punishment can be Criminal

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 Law and Civil Law. In order that, PLN must ensure all contractors who
participate in 35 Gigawatt free from accrued tax.
3) Debt
In fundamental analysis, the comparison of debt to equity, well-known
as debt to equity ratio (DER). The calculation of DER is the total
amount of debt divided by the total amount of equity (%). If the value
of DER is less than 100 %, it means that the contractor has a good
financial. On the other hand, the comparison of equity to debt, well-
known as equity to debt ratio (EDR). The calculation of EDR is the
total amount of equity divided by the total amount of debt (%). If the
value of EDR is greater than 100 %, it means that the contractor has a
bad financial. In order that, PLN can determine the contractor whether
it has a good financial or not.
e. Project Equipment
Project equipment is one of the most important assets which supports the
continuity of the 35 Gigawatt power project. The contractor must have
equipment which has already been certified and calibrated. The
equipment must be suitable with the needs of project.

4. CONCLUSION
To select a highly qualified contractor and to support the continuity of 35
Gigawatt power project based on The Electricity Procurement Business Plan
(RUPTL), these can be concluded that a highly qualified contractor has :
1. Competency
The contractor must have the Letter of Business Entities (SBU).
2. Human Resources
The engineer must have Certificate of Competence (SKT) and Certificate of
Expertise (SKA).
3. Background
a. Experience in power project
b. Having a good result in previous project
c. Having a legal background
4. Finance
a. The contractor must have a good financial capital

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 b. The ratio of debt to equity (DER) must less than 100 %
c. The contractor must not have an accrued tax
5. Project Equipment
The project equipment must have been certified and calibrated.

BIOGRAPHY

1. Name : Aldi Erzanuari, S.ST

NIP : 93151259ZY
Unit : PT PLN (Persero) Wilayah Suluttenggo AP2B Sistem
Minahasa
Date of birth : January 15th, 1993
Origin : Surabaya
Email : aldi.erzanuari@pln.co.id
Phone : +62 821 90000 643

2. Name : Arif Majiid Nusa Pratama, A.Md

NIP : 93161837ZY
Unit : PT PLN (Persero) Wilayah Suluttenggo AP2B Sistem
Minahasa
Date of birth : February 2nd, 1993
Origin : Semarang
Email : arif.pratama2@pln.co.id
Phone : +62 811 290 1151