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PLN to renegotiate power use with malls

Following intense protests from the business community, state power company PT PLN has postponed launching a regulation that would force shopping malls, hotels and offices in Java and Bali to undergo extreme efficiency measures

Alfian (The Jakarta Post)
Jakarta
Tue, August 26, 2008

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PLN to renegotiate power use with malls

Following intense protests from the business community, state power company PT PLN has postponed launching a regulation that would force shopping malls, hotels and offices in Java and Bali to undergo extreme efficiency measures.

PLN director for Java and Bali Murtaqi Syamsuddin said Monday the company and business representatives had failed to come up with a settlement to cope with power shortages.

"We are still negotiating a plan for power saving. We want to be able to prevent power shortages but without burdening the business community," Murtaqi said.

Under the PLN regulation, malls, hotels and offices would be required to use their own power generators 10 hours per week between 5 p.m. and 10 p.m., the busiest hours for stores and hotels.

The regulation was to take effect Monday.

Shopping centers have strongly opposed the plan saying it would saddle them with additional costs of up to Rp 100 million (US$10,869) per month.

The Indonesian Shopping Center Association (APPBI) has threatened to stage a massive rally should the government insist on the plan.

However, APPBI chairman Stefanus Ridwan told The Jakarta Post that shopping centers would agree to follow the regulation as long as PLN reduced the required hours for generator use.

"The generator requirement could be cut to once a week, for example. PLN's plan just is not economically feasible for us," Stefanus said.

Murtaqi said PLN would not hesitate to rethink the mandatory blackouts.

"We expect to resolve this matter before (the Islamic fasting month of) Ramadan. We don't want the public to face blackouts during the month," he said.

Murtaqi last week said electricity consumption in Java and Bali was estimated to increase by 2.5 percent during Ramadan and New Year's.

By ordering shopping malls, hotels and offices to switch to their generator, PLN expects to save up to 200 megawatts of electricity per day.

The government last month issued a regulation ordering manufacturers in Java and Bali to shift up to two working days every month to the weekends, but excluded those forced to operate 24 hours a day.

Murtaqi said PLN had managed to meet its target of saving an average of 180 MW per day under the regulation.

"But this is not enough. In order to maintain power stability in Java and Bali we need to save 600 MW. That is why we need the participation of shopping malls and hotels," he said.

Murtaqi said last week that PLN was also considering another power saving mechanism that would implicate industries operating 24 hours a day.

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