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Your letters: Electricity shortage
Powerless: Dozens of people demonstrate in front of state-owned electricity company PLNâs branch office in Palu, Central Sulawesi, in January, in protest at frequent blackouts in their areas
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span class="inline inline-center">Powerless: Dozens of people demonstrate in front of state-owned electricity company PLN's branch office in Palu, Central Sulawesi, in January, in protest at frequent blackouts in their areas. Antara/Zainuddin MN
This letter below is in reference to an article entitled 'Community partnership: Bringing light to remote villages' (The Jakarta Post, March 23).
As Indonesia's economy grows, so does the demand for electricity. However, according to the Energy and Mineral Resources Ministry, the electrification ratio of Indonesia peaked at just 80.54 percent during the first quarter of last year. In reference to the report by the Monitoring Team of Fiscal Risk Management in 2010, there is an elasticity of electricity in Indonesia that hovers between 1 and 2 percent toward the national development, meaning that for every 1 percent increase in economic growth, there will be a corresponding electricity demand increase of one to two times that amount.
Fossil fuels still dominate our energy mix. Putting aside the environmental degradation that might be caused by the carbon dioxide emitted by the burning of fossil fuels, Indonesia still has difficulty facing the high cost of distributing fossil fuels across the far-flung archipelago. Somehow, this hinders state-owned electricity company PLN from building bigger generating units in remote areas.
Even so, Indonesia is blessed with rich renewable energy potential, such as geothermal, solar, wind, biomass and hydro. These potential resources could support mini-grid projects to be implemented in remote areas.
Developing renewable energy resources to fulfill Indonesia's growing electricity demand has been an aim of the government, and the current programs initiated by Philips Indonesia in Makassar offer proof that Indonesia is on track to make its electricity-business environment more conducive for investors. Not only that, but it is also predicted that Indonesia, especially Java, will experience an electricity crisis in 2016. There is growing concern shown by the government, which issued the Fast Track Program I in 2006 and the Fast Track Program II in 2010 with the aim of accelerating power generation and providing guarantees to the investors.
While unavoidable challenges and obstacles remain, the government should work harder to create a more attractive electricity business environment by creating a clear road map for program implementation, a comprehensive legal framework to be applied in remote areas, and sufficient funding.
Nadya Yolanda A.M.
Jakarta
