Electricity projects<\/p>\n
Regarding the article \"Influence brokers inflate prices of
\nelectricity plants,\" the latest statement by Indonesia's electric
\nutility, PLN (state electricity company), that it must go ahead
\nwith three controversial power projects (Muara Tawar, Tambak
\nLorok II and Grati) is unfortunate, for these projects do not
\nrepresent the best way to progress toward greater efficiency and
\nhigher quality of service.<\/p>\n
First of all, these projects were conceived under pressure of
\na crisis that no longer exists. PLN has excess capacity in the
\nJava-Bali system since the completion of projects that were
\naccelerated during the 1990 crisis (Gresik, Muara Karang, Paiton,
\nTambak Lorok I and Tanjung Priok).<\/p>\n
Today PLN cannot sell all the electricity it is able to
\ngenerate because many industrial customers, who were unable to
\nget PLN connections or who were not satisfied with PLN's quality
\nof service, decided to install their own generators. To improve
\nthe situation, PLN would do better to invest its scarce resources
\nto strengthen transmission and distribution, rather than build
\nnew power plants in Java. (PLN has already agreed to this idea,
\nbut only after the three new projects are built).<\/p>\n
Second, these projects will impede the process of involving
\nthe private sector in power supply, something to which the
\npresident has been committed since 1990 but which has moved
\nforward very slowly since then. Private power projects for West
\nand East Java have been proposed and approved by the government,
\nand should be allowed to replace the Muara Tawar and Grati PLN
\nprojects. But right now the private projects are on hold because
\ntheir potential gas supplies have been committed by Pertamina to
\nPLN.<\/p>\n
Indonesia is on the verge of making substantial changes it its
\npower sector, changes that can increase efficiency through
\ncompetition, reduce dependence on government subsidies, make
\noptimal use of all available energy resources, slow down
\nenvironmental pollution, and stimulate growth of employment and
\nindustry. Given the government's expressed commitment to these
\nobjectives, one must wonder why PLN insists on building the three
\nprojects in question. It is not too late to change course, but
\nperhaps those \"lobbyists and brokers with strong political ties\"
\nwho were mentioned in the DPR hearing are still having their day.<\/p>\n
LORENZO KRISTOV<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/electricity-projects-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }