Business World Raises Alarm Over Rolling Blackouts Disrupting Economic Activity
The Indonesian Chamber of Commerce and Industry (Kadin) has highlighted the negative impact of recent power outages on the island of Java, warning they could hamper production and pose a threat to investment and manufacturing. The business community views the unstable electricity supply as a disruption to economic activity that increases operational costs and the risk of losses for businesses.
Kadin’s Vice Chairman for Organisation, Communication and Regional Empowerment, Erwin Aksa, stated that based on communications with regional businesses, the impact of the blackouts is not confined to Java but has also been reported in several areas outside the island with varying intensity. “Kadin has received various reports and inputs from businesses in a number of regions. Although the level of disruption differs in each area, the business world considers this issue quite serious because electricity is a basic infrastructure that underpins almost all economic activity,” Erwin said on Sunday (21/6).
He noted that the most complaints came from the manufacturing, food and beverage processing, textile, cold chain logistics, data centre, private hospital, shopping centre, hotel, and micro, small, and medium enterprise (UMKM) sectors, all of which are highly dependent on a stable electricity supply. “For industries that operate continuously, blackouts not only halt production temporarily but can also disrupt the entire production process, increasing the risk of damage to raw materials, semi-finished products, and production equipment,” Erwin explained.
Kadin is still gathering data from various regions to calculate the potential national loss, so a verified figure is not yet available. However, Erwin assessed that businesses are already facing additional burdens due to the power supply disruptions.
Similar concerns were voiced by the Chairperson of the Indonesian Employers’ Association (Apindo), Shinta W. Kamdani, who said the rolling blackouts are a serious concern for the business world. She noted that the impact goes beyond temporary production stoppages, as businesses must also bear extra costs for restarting machinery, operating generators, purchasing additional fuel, and risking damage to raw materials and goods in process. Delays in fulfilling contracts with buyers are another risk companies face. “UMKM players are also potentially affected because not all small businesses have the capacity to provide backup power sources. So the impact is not only felt by large industries but also by UMKM,” Shinta said.
Apindo Vice Chairman Sanny Iskandar added that electricity is a fundamental prerequisite for economic activity, making mitigation, transparency, and rapid recovery crucial. He stressed that power reliability not only affects the daily operations of businesses but also influences investor perception of business certainty, a risk particularly felt by the manufacturing, industrial estate, and high-tech industries that require a stable power supply. Sanny assessed that industrial customers need early warning, clear communication channels, and a swift response when disruptions occur so companies can adjust production schedules, secure raw materials, manage labour, and reduce operational losses. “Transparent, clear, and synchronised public communication from the relevant parties, especially PLN and the Ministry of Energy and Mineral Resources, regarding the cause of this problem is urgently needed by the public and businesses,” he asserted.
Chairman of the Indonesian Industrial Estates Association (HKI), Akhmad Ma’ruf Maulana, also highlighted the rolling blackouts. He argued that even a brief power disruption can cause economic damage far greater than what is visible on the surface. In modern industry, production processes are integrated and continuous; when power is cut, it is not just machines that stop working. The disruption can cause raw material damage, production failure, delivery delays, supply chain disturbances, and additional costs for operating backup systems. In sectors such as petrochemicals, steel, semiconductors, data centres, pharmaceuticals, and continuous process industries, the impact is considered much greater, and the operational recovery process takes a considerable amount of time. “Amid Indonesia’s ambition to become an advanced industrial nation, a downstreaming hub, a regional manufacturing base, and a global investment destination, electricity reliability is no longer just a public service matter but has become the primary foundation of national economic competitiveness,” Ma’ruf stated. He added that the power disruptions should serve as a warning for the government to strengthen the national electricity system. HKI also urged the government to facilitate industrial estates wishing to have their own electricity business areas and build power plants according to their needs.