Indonesian Political, Business & Finance News

Blackouts cost tourism, Internet businesses

| Source: JP

Blackouts cost tourism, Internet businesses

Syofiardi Bachyul Jb, Padang

Rotating power shutdowns in West Sumatra in the past month have
hit the tourism and telecommunications sectors in the province.

Businessmen have not yet reported significant financial losses
due to the incidents, but they have disrupted the operation of
hotels and telephone and Internet kiosks in the province.

Chairman of the West Sumatra Hotel and Restaurant Association
(PHRI) Aim Zein said on Friday that the power problem had been an
inconvenience to foreign and domestic guests staying at hotels in
West Sumatra.

"It's disappointing. The tourism sector has just bounced back
after the crisis that followed the Bali and Marriott hotel
bombings in the past two years, but now we are facing another
crisis," said Aim.

There are 1,500 hotel rooms in Padang and Bukittinggi
municipalities alone, and some 90 percent of these are filled by
guests staying there during the school holidays.

"We are afraid that the tourists will be disappointed by the
poor infrastructure and will decide not to visit West Sumatra
anymore," he said.

He said that two weeks ago, state electricity company PT PLN
cut power in the province for three hours per day, but now power
outages were 6 hours to 12 hours per day.

He said that the hardest hit were non-star-rated hotels,
because they were not equipped with power generators. This was
disturbing because about 90 percent of more than 100 registered
hotels in West Sumatra are non-star-rated.

Aim said that hotels bore the costs of power shutdowns in
three ways. First, they were supposed to satisfy customers, but
the power cuts had caused disappointment. Second, operational
costs for hotels using generators soared as they had to spend
much more on gasoline. Third, the rotating shutdowns damaged
appliances, air-conditioners and other items.

A similar situation also applied to restaurants. He said
restaurants were unable to provide high-quality service because
there were frequent disturbances to kitchens and their electrical
appliances.

Internet businesspeople also expressed concern at power
shutdowns that have affected three provinces: West Sumatra, Jambi
and Riau. Chairman of West Sumatra Computer Businesspeoples
Association (Apkomindo) Setiawan said most association members
had complained over the incidents.

"Sudden, repeated power shutdowns have damaged our computers.
Three of my hard disks are damaged and their repair cost me Rp 2
million (US$ 210.5)," said Setiawan.

Setiawan, the director of CV Ikrar Mitra Utama, who is also an
Internet Service Provider (ISP), said that he had to spend a lot
on running a generator.

He said he was planning to seek compensation from PLN over the
losses that he had borne due to power cuts.

Power outages occurred after the decline in water debit in
reservoirs and lakes that are the energy source for three power
plants in the three provinces.

Deputy communications manager at PLN's West Sumatra office
Yusman Radjo Mudo said on Friday that the company was doing its
best to bring the power outages to an end.

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