Sat, 14 Sep 2002

Business severely hit by massive blackout

Damar Harsanto and Theresia Sufa, The Jakarta Post, Jakarta/Bogor

An hours-long blackout affecting much of Jakarta on Thursday and Friday caused massive losses to small and medium-sized businesses forced to shut their doors while waiting for power to be restored.

Srijanto Tjokrosudarmo, chairman of the Association of Indonesian Telephone Kiosk Owners, told The Jakarta Post on Friday a day-long blackout or disruption of power could cause at least Rp 6 billion in losses to association members.

There are a total of 30,000 small to medium-sized telephone kiosks across the capital which can make up to Rp 200,000 a day, Srijanto said.

"We have yet to take into account those owners who suffered even greater losses because the blackout damaged their computers," Srijanto said, adding that the association already had received numerous complaints of damaged computers from members.

Srijanto said the association planned to file a grievance with state-owned power supplier PLN to recoup the losses.

The blackout also hit Internet kiosks, which depend on an uninterrupted power supply.

Michael Sunggiardi, chairman of the Association of Indonesian Internet Kiosk Owners, said the blackout dealt a blow to association members.

"A small (Internet) kiosk with a minimum of five computers could suffer losses of Rp 3,000 per computer for each hour of disruption (in the power supply)," Michael told the Post.

There are 300 Internet kiosks in Jakarta that are members of the association, and many others that are not registered.

Cahyo, who owns the Meruya Net Internet kiosk, said the blackout cost him Rp 300,000 in losses.

"And I still have to pay my two employees who came to work as usual," he said.

If the blackouts continue, Cahyo said, he would go to the Indonesian Consumers Foundation (YLKI) to file a class action suit against PLN.

The blackout also resulted in massive losses for the entertainment and hospitality industry, including small and medium-sized hotels and restaurants.

"Many small and medium-sized hotels and restaurants with no access to power generators suffered the most from the blackouts," said Adrian Maelite, secretary-general of the Association of Indonesian Nightspot Owners.

Adrian said the blackout also prevented potential customers from leaving their homes, while at the same time hotel and restaurant owners had to pay their employees as usual.

Hendri Suhenda, who owns a juice outlet on Jl. Jend. Sudirman in Central Jakarta, complained that his electric cooler could not be operated as the building management only supplied enough power from the generator for lights.

"Besides, many orders have been canceled as our deliverymen were not allowed to enter other buildings due to the blackout," Hendri said.

Meanwhile, firms in Bogor suffered losses that reached hundreds of millions of rupiah due to the blackout.

Tiremaker Goodyear, for example, suffered a Rp 300 million (US$33,700) loss as it failed to reach its usual daily production of between 2,000 and 2,500 tires.

"We haven't had a generator since 1997 as the neighboring residents complained about it," said Goodyear's corporate secretary, Sugiama.

The company has had to dump 600 unfinished tires which were being processed when the lights went out.

Publicly listed PT Semen Cibinong, located in Cileungsi, Bogor regency, also suffered as a result of the blackout.

"We had to stop all production because our generator can only provide enough power for lighting," said company spokesman Nico Wattimena.