PLN’s troubles are a microcosm of the problems facing the country’s creaking infrastructure. (JG Photo/Safir Makki)
Perhaps one of the most defining events of 2009 was the large-scale power shortages that plagued Jakarta. The rolling blackouts, which followed an explosion at the central transmission facility of state power company PT Perusahaan Listrik Negara in Cawang in late September, underlined just how far behind the company had fallen in its ability to meet the country’s power needs.
Over the past decade, PLN’s aging infrastructure has been unable to cope with the increasing demand on the national grid. Outages have become so frequent that the economy is under threat. Potential investors have shied away from building new manufacturing plants in Indonesia for fear of inadequate power supply.
PLN’s troubles are a microcosm of the problems facing the country’s creaking infrastructure. These problems have been well documented but the solutions still seem to be out of reach. Our roads are clogged, our ports and airports unable to cope and our connectivity and communications are inferior to other countries in the region.
Improving infrastructure is vital, not only for the country’s economic competitiveness, but also for raising the standard of living for all citizens. Time is of the essence, and we cannot afford to remain stuck in bureaucratic red tape any longer.
For this reason, the appointment of Dahlan Iskan as PLN’s new president director will be closely watched. His biggest challenge and goal is not administrative change, as has been cited in numerous commentaries, but to roll out the planned 10,000-megawatt power project in three to five years. To achieve this seemingly insurmountable task, Dahlan will need to project leadership, exercise political will and mobilize the bureaucracy behind him. Most critically, he will need the full support of President Susilo Bambang Yudhoyono.
In the final analysis, Dahlan will not be judged on technical know-how or expertise. He will be judged on one critical task — delivering on the 10,000-megawatt project.
One unique advantage Dahlan has is his close ties with China and Chinese businesses. The Chinese have built infrastructure on a scale not seen before, and there is much Indonesia can learn from them. We must not be hesitant or arrogant in our thinking and willingness to do so.
More important, the Chinese are ready and willing to invest in Indonesia, and Dahlan can act as a natural bridge given his Mandarin language skills and deep understanding of that country.
Dahlan was not chosen to head PLN because of his technocratic abilities, a shortcoming his critics have pointed out. He has been asked to solve Indonesia’s power problems and, given his past record as an entrepreneur and businessman, he has all the necessary qualities to succeed. But he will need the country’s bureaucracy to get behind him and see the big picture.
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