Strategic Solutions to Performance Decline at PLTU Energi Nusantara

The Energi Nusantara Power Plant (PLTU Energi Nusantara) is facing a severe operational underperformance of lower generation, effectiveness of maintenance, and settled financial penalties from PLN on electricity supply toward PLN. These challenges have resulted in growing operational costs and falling revenues, undermining the sustainability of PLTU. Overcoming these challenges requires that a fundamental shift take place, and this paper focuses on the two main issues: the transition from a reactive maintenance culture towards predictive maintenance and the situation where decision- makers are between replacing a machine and taking major overhaul action when the machine’s condition has failed. Preventive maintenance is good maintenance that will increase the reliability of equipment, minimize downtime, and maximize electricity generation. These investment decisions have produced a trade-off between the replacement of obsolete equipment (with long-term benefits from technological progress) and carrying out big maintenance as a temporary cost-effective intervention. Employing Business Process Re-engineering (BPR), Total Productive Maintenance (TPM), and Life Cycle Cost Analysis (LCCA), it analyzes historical operational and financial data to suggest the best solutions. Physical evidence is that preventive maintenance increases plant effectiveness and decreases maintenance cost. Even where replacement of machinery requires higher initial capital investment, it will contribute to better operational and financial results over the long term than permanent repairs. This study offers direct guidelines for improving operating practices, establishing sustainable preservation strategies, and employing data-based capital investment decisions that help rehabilitate the plant’s performance and preserve its financial viability. The solutions enable PLTU to meet Indonesia’s increasing need for electricity and enhance its competitive landscape in the energy industry.