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Businesses demand certainty from PLN over power supply
A powerful business lobby group has a new request for the state electricity company: If you can't give us electricity, at least give us some certainty
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A powerful business lobby group has a new request for the state electricity company: If you can't give us electricity, at least give us some certainty.
The Indonesian Chamber of Commerce and Industry (Kadin) has said businesses need better information from the state electricity company PT Perusahaan Listrik Negara (PLN) to avoid incurring further losses due to the power cuts.
"We need certainty, such as advance notification if PLN is planning a blackout, because the sudden cuts are harming our production," head of Kadin's permanent committee for electricity Bakti Laddi said after meeting with PLN officials Wednesday.
Kadin's request is similar to that made by Japanese companies in the Japan Jakarta Club, which has also requested earlier notification of blackouts.
According to a survey conducted by the Japanese lobby group, 42 of its members have suffered total losses worth Rp 41 billion, because frequent blackouts in May and June led to defects in products and damage to production facilities.
Bakti said that during the meeting, industries also demanded that PLN prioritize the power supply for industries that rely heavily on electricity.
"Industries with cold storage, and those with have high export activities and with overseas affiliations have to have a guarantee that PLN will prioritize their power supply," he said.
Also attending the meeting was chairman of the Indonesian Plastic Association, Didie Suwondho, who said the prioritization was needed because such industries were mostly labor-intensive and export-oriented.
Bakti said another aim of the meeting was to find a solution in relation to a recent joint ministerial decree on the country's power crisis.
"We discussed the decree a little bit, but because we haven't got the details, we haven't come to a decision yet," he said.
The meeting is expected to be concluded next week.
PLN vice president director Rudiantara said the two parties needed to discuss an appropriate scheme, because industry had different power needs to households.
"We're still at the stage of learning each other's needs and capacity," he said.
The joint ministerial decree, which imposes a new schedule for business operating hours, was finalized Tuesday and is expected to take effect in October.
The decree also establishes punishments for manufacturers that fail to comply with the regulation by cutting their electricity supply temporarily. Companies that do move their operating hours in accordance with the decree will be rewarded.
The details of the punishments and incentives will be determined between PLN and individual manufacturers.
According to the Industry Ministry, manufacturers and households are the biggest consumers of electricity, at around 38 percent each, followed by other businesses such as malls and offices at 20 percent.
