Power crisis starts hitting Batam; fear investors may move offshore

Fadli ,  The Jakarta Post ,  Batam   |  Fri, 05/02/2008 1:33 PM  |  The Archipelago

A partial blackout on Batam, Riau Islands, is affecting local trade while the governor fears foreign investors may move offshore.

Evawani Samosir, a ticketing officer for PT Ananda Tour and Travel, said Wednesday the blackout had completely disturbed the company's online ticketing process.

"We can't rely on our generator. We had to wait over three hours to resume operations. Customers have complained and we have lost many opportunities," said Evawani.

Oriana, an internet cafe owner, said her income has decreased by some 50 percent to Rp 400 (US$3.2). She said she would need to close her business if the power crisis continued.

"An internet cafe like mine must rely on electricity from state-owned PT PLN. We don't have a reserve generator because it is too expensive," she said.

The partial blackout on the island is due to expensive fuel and gases, reducing the power plant's capacity to 170 megawatts from the normal 270 megawatts.

The island's governor, Ismeth Abdullahm, said the power crisis was engineered by third parties, causing chaos on the island.

Most of the 22 industrial zones in Batam, which hosts more than 600 factories, are still relying on power from PLN.

The governor said he would report the case to President Susilo Bambang Yudhoyono, who is expected to give a solution.

"I want to know why PGN has reduced the gas supply to Batam. Is it because of the price or because of another reason? As long as I know, the gas supply to Singapore is normal.

"This case must be investigated. I fear this crisis will affect investment and cause foreign investors to relocate to other countries," said the governor.

PGN's sales director Cahyo said the blackout was out of the company's control because PLN purchased gas from a third party. PLN's gas is not directly supplied by PGN, but rather through a private company PT Dalle Energy Batam, he said.

"PLN is not our customer. They purchase their gas from another party. So the supply shortage is not because of us, but rather because of its supplier," said Cahyo.

PLN Batam has been informing the public of the partial blackout through three local newspapers since Monday. The blackouts have lasted between 3 and 6 hours in both housing areas and industrial zones.

PT PLN is unable to say when the partial blackout will end, Ade Sulityani, spokesman for PT PLN Batam, said.

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