A worker checking an insulated gas line at the PLN power station in East Jakarta. The utility company has failed to provide adequate power supply to service areas since September. (Photo: Safir Makki, JG)
Avisibly angry President Susilo Bambang Yudhoyono on Tuesday warned state utility PT Perusahaan Listrik Negara that if it could not end the nation’s power shortages — especially in Jakarta — then other independent companies may be given the chance to do so.
“PLN seems to have a limited capability on this issue, and it would be wrong if PLN wanted to handle [the nation’s power needs all alone]. Other companies should be given the opportunity through the correct regulations and policies,” Yudhoyono said after a limited cabinet meeting held with PLN directors on Tuesday.
He did not elaborate.
PLN currently enjoys a monopoly on generating and selling power in the country, although a recent regulation allowed independent power producers to sell power directly to producers in areas where there is currently no power supply.
After the meeting, Yudhoyono told reporters he had asked PLN president director Fahmi Mochtar whether PLN was capable of producing enough power to meet the country’s needs.
He said he also demanded that Fahmi explain whether PLN was capable of handling the current power-shortage crisis, and whether it had any backup plans in case its existing policies didn’t work. He did not describe Fahmi’s replies.
The meeting was also attended by Coordinating Minister for the Economy Hatta Rajasa, Energy and Mineral Resources Minister Darwin Saleh, State Minister for State Enterprise Mustafa Abubakar, State Secretary Sudi Silalahi and Jakarta Governor Fauzi Bowo.
Yudhoyono also said PLN needed to demonstrate good governance as a large business with trillions of rupiah in revenue.
“There should be no wrongdoing. If there is wrongdoing then the people will suffer,” he added, without elaborating.
Fahmi was questioned as a witness by the Corruption Eradication Commission (KPK) on Thursday over the procurement of an information technology system when he served as PLN’s director for the Jakarta area from 2003 to 2005. Fahmi approved the Rp 241.5 billion ($25.7 million) purchase without a tender process.
Yudhoyono emphasized that generating enough power to meet the country’s needs would be a priority of the government for the next five years. He asked for effective planning and coordination between PLN and relevant parties.
The president urged a coordinated effort among government ministries and departments to find the funding necessary to finance the production of enough power to meet demand.
Meanwhile, Yudhoyono said he planned to instruct all government agencies and state-owned firms to conserve more energy.
“We did it a few years back and it had a significant result,” Sudi said after the meeting. “The savings could cut up to 70 percent of electricity usage in all government bodies.”
Hatta said the government needed Rp 30 trillion to overcome the national electricity shortage, with Rp 5.6 trillion to solve the electricity problems in Jakarta alone. “We have calculated the required funds needed to overcome the shortage of electricity and later we will coordinate the sources of the funding from PLN, the state budget and regional government funds,” Hatta said.
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