Indonesia Dancing in The Dark

By: Sapariah Saturi Harsono
dari Indonesia Rising

BLACKOUT is not a new message coming from Indonesia’s State Electricity Company (PLN). In the 1950s, when Indonesia began to replace the Netherlands Indies, and the Dutch electrical company was baptized into PLN, blackout was becoming a regular phenomenon in Java and Bali, the largest energy consumers in Indonesia. The Suharto regime slowly managed to reduce these difficulties.

But darkness strikes again. PLN recently announced that Jakarta would have successive blackouts on July 11-25. In the provinces, the regular power cut started months earlier. Some did not get prior notice, creating massive losses among industries and grumbles from ordinary people.

The blackouts obviously frustrated industrialists and businesspeople. Many companies asked their workers not going to work. Some also suffered losses, big and small, especially small and medium enterprises, that have no muscle to buy power generators.

In Ungaran, when PLN Central Java suddenly turned off the switch, around 67,000 liters of cow milk became spoiled in a single month. The losses affected five village cooperatives in Semarang and Boyolali regencies, including 10,000 liters of spoiled milk in Sidodadi Getasan village, 20,000 in Getasan, 4,000 in Pabelan, 21,000 in Boyolali and 12,000 liters in Ungaran.

Business association obviosly complain out loud. Ernovian G. Ismy of the Indonesian Textile Association said his organization’s data shows losses especially took place among small and medium-sized companies. For example, a spinning factory with 60 machines, producing 1.2 tones of material per day, with the price of US$2 per kilogram, might lose Rp 900 million per hour.

PLN blames the lack of power plants. Wait a minute! What’s about planning? What’s about management? Don’t they realize that in our MBA schools we have the word “growth”?

Currently, PLN produces a maximum capacity of 29,705 megawatts. Java-Bali produces 22,302 mw and the Outer Islands make 7,403 mw. The peak burden in Java-Bali is 17,000 mw. Now PLN has 22,000 mw installed in the Java-Bali power line with a backup of 5,000 mw or 20 percent of the needs. Ideally, PLN should have 30 percent of backup power.

The government argues the Asian crisis in 1998 helped slow down the power plant construction. Since 1998, the government only managed to build 3,000 mw of power plants. Meanwhile, the demands grow 3,000 mw annually.

The government promised to build 10,000 mw of power plants. They started the program in 2005. Last year the tender process began. Now contracts are being signed. It is not easy, as building the 10,000-megawatt plants will cost a lot of money.

Yogo Pratomo, who headed a government team to build the plants, aired his optimism, saying that 10 percents will be finalized next year, 80 percents by 2010 and the rest by 2011. In Java, they are building nine plants and 18 others in the Outer Islands.

Five cabinet members also signed an agreement on July 11 to overcome the electrical crisis. They included Industry Minister Fahmi Idris, State Minister of State Enterprises Sofyan Djalil, Energy and Mineral Resources Minister Purnomo Yusgiantoro, Home Affairs Minister Mardiyanto and Man Power and Transmigration Erman Suparno

They agreed to partially shift the Monday-to-Friday working days to Saturday-Sunday. They calculated that weekends usually have extra 1,000-2,000 mw.

Achmad Taufik Haji, PLN’s deputy director on trade and consumer service, welcomed the joint decision, saying that it helps PLN to deal with its limited capacity.

Signing the joint decree is easier than doing it. Their program socialization still does not work. PLN is now planning to increase its tariff for businesses and factories. Once again, it wants to save power.

PLN chief commissionaire Al Hilal Hamdi said the tariff hike would affect only the top 8,000 business consumers. PLN currently has 3.5 million consumers.

Sofjan Wanandi of the influential Indonesian Employers Association said it is not appropriate to talk about price hike when the schedule of the blackouts is still not clear. “These are still government options. We told them to talk first about the five-minister decree.”

Will the workday shit be effective? Will it help overcome the darkness? Will the government fullfil its 10,000-megawatt promise? Well, let’s wait and see while dancing in the dark.

Diterjemahkan oleh Andreas Harsono dari tulisan Krisis Listrik yang Tak Kunjung Usai