Sunday, December 7, 2008

Indonesia Electricity Crisis

This huge banner on the wall of PT PLN (Indonesia's State Electricity Company) office building on Cikapundung Street, Bandung, reads "Avoid Blackout ...! Let's economize the use of electricity now ...!"

This banner is part of the nation-wide campaign to conserve the use of electricity and other forms of energy.

Shortage of electricity supply is a nation-wide concern now. Indonesia's electricity consumption grows 6.7 percent per year, while the the generating capacity only grows 3.5 percent per year. If this trend continues, Indonesia will soon have an electricity crisis.

For your information, Indonesia only has one electricity company, that is PT PLN (Perusahaan Listrik Negara) or State Electricity Company. PT PLN handles both the production and distribution of electricity for the whole country. This monopoly is guaranteed by the Indonesian Constitution, which states "Branches of production which are important for the state and which affect the lives of most people shall be controlled by the state."

As a result of this monopoly, however, PT PLN has been considered by many as inefficient. Our electricity tarif, for example, is one of the most expensive among ASEAN (Association of Southeast Asian Nations) countries. (Lower income families who use 900 Kwh or less of electricity, however, are heavily subsidized by the state, and therefore they don't have to pay the actual tarif.)

There have been proposals to end PT PLN monopoly, but the latest legislation passed by the House of Representatives (DPR) was revoked by The Indonesian Constitutional Court because it was considered unconstitutional.

Private companies can produce electricity but all their production has to be sold to PT PLN at the price that is subject to government regulation.


the donG said...

everyone should be helping out lessen the use of electricity. at least in the right reason. it's good to know that the electric company there is actively promoting it.

Fly said...

very nicy blog, cool pic bro, lot of fresh idea congratulation

Photo Cache said...

it is every one's duty to use as little and as wisely as possible our resources.

we hope everyone gets to pitch in so the crisis will be avoided.

Laurie said...

Interesting information -- and a little scary! I would like to see the world band together to save energy and move toward renewable sources. Here in Southern California, we have all the right settings for solar/wind power generation on a massive scale and yet it still hasn't materialized.

JBrag said...

Hydro power plant is a costly option, particularly to our environment, yet the Chinese Government did it. PLN has been dependent largely upon fossil power plant at industrial pricing rate, thanks to Pertamina.

The main problem is having connected on any natural energy resources to available grid. Solar and wind power plant could be set up quickly without the need of available grid, but cost of electricity generated is still beyond most of us.

Mona 033776 said...

just like what Mtv said
It's time to switch

ramblingwoods said...

We all need to conserve...of course I sit in the country that uses the most resources sadly...

amelia, lia said...

Nice picture...,

we should start with the real act, "stop using unnecessary electrical equipments just for fun!"
standard banner, with full of hopes.
save us from the energy collapse. I hope our people realize it from now.

Amelia, Lia : 032822