SMEs hardest hit by blackouts

Indah Setiawati ,  The Jakarta Post ,  Jakarta   |  Mon, 11/09/2009 8:52 PM  |  Business

The Jakarta chapter of the Indonesian Chamber of Commerce and Industry (Kadin) says that small and medium enterprises in the city are being hit hardest by the frequent power blackouts, with daily losses estimated at Rp 10 billion (US$1.065 million).

“The impact [of the blackouts] is quite big. In one day, losses can reach around Rp 10 billion,” Rainer Tobing, the chapter’s deputy head for industry, energy and agriculture, said Monday.

The Kadin chapter is an umbrella for around 32,000 small- and medium-scale enterprises.

Dhaniswara K. Harjono, chief advisor of Jakarta’s Kadin, said the SMEs were the real victims of the blackouts because they could not afford to buy generators.

“Consumers are entitled to safety, comfort and certainty from the electricity company,” he said.

Residents and businesses in Greater Jakarta have complained about a recent spate of blackouts, which have been conducted by state power company PT PLN while it repairs several damaged substations.

The Agency for Assessment and Application of Technology (BPPT) warned last week that a complete power overhaul was needed to prevent worse damage to Jakarta's power transformers that could lead to more extensive and longer blackouts.

BPTT revealed that most transformers had been shouldering a more than 90 percent load capacity, exceeding the safe load capacity of 60 percent.

PLN has been looking for a Rp 5.6 trillion ($592 million) loan for the procurement of new transformers since 2006.

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