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Dutch company helps PLN reduce electricity losses

| Source: JP

Dutch company helps PLN reduce electricity losses

JAKARTA (JP): The State Electricity Company (PLN) has assigned
a consortium of three Dutch electricity companies to resume
assistance in order to reduce electricity losses in Indonesia.

"The cooperation is expected to be expanded in the future to
include the technology of Kema International, one of the three
Netherlands companies, in PLN's power projects," PLN's president
Zuhal said here yesterday.

The cooperation agreement was signed here on Wednesday by
executives of PLN and the consortium, which includes Kema and
Samerwerkende Elektriciteits Produktiebedrijven.

PLN and KEMA had cooperated in 1990 on development technology
to minimize power losses during transmission in Jakarta and West
Java, but the cooperation was suspended in 1992 when the
Indonesian government announced its decision to stop accepting
any development aid from the Netherlands amid allegations that it
had used the aid as a tool to intimidate Indonesia on human
rights issues.

Zuhal said PLN's electricity losses are estimated at 12.4
percent.

Kema, under its previous cooperation, had in fact helped
reduce PLN's power losses in West Java to 10 percent in 1992 from
14 percent in 1990.

Power sales

Zuhal did not specify the financial loss caused by PLN's
electricity losses, but said that its electricity sales increased
to Rp 4.91 trillion (US$2.28 billion) last year from Rp 4.18
trillion in 1992.

He explained that the electricity losses are caused by the
natural depreciation of the transmission facilities and by
corruption and theft.

Meanwhile Eko Soemanto, head of PLN's statistical bureau, told
The Jakarta Post yesterday that PLN's losses in 1992 declined to
14.12 percent from 15.63 percent in 1991 and 15.87 percent in
1990.

By comparison, Singapore's losses of electricity are around
eight percent.

He said that Lampung, West Nusa Tenggara and Maluku provinces
have the biggest losses -- 18.96 percent, 18.93 percent and 16.86
percent, respectively.

He added that Central, West and East Java have the lowest
levels of losses with 7.55 percent, 8.57 percent and 9.69
percent, respectively.

Zuhal said that under the agreement, the Dutch consortium is
expected to provide financial assistance.

"PLN welcomes Dutch companies because they have comparative
advantages in technologies for power generation and
transmission," Zuhal told reporters after a ceremony for the
transfer of Rp 1.8 billion in grants from PLN's education and
welfare foundation to the Foundation of the Ministry of Mines and
Energy.

The ministry's foundation will use Rp 800 million of the grant
as equity in its property company, PT Karsatama Bumisejahtera,
and the other Rp 1 billion as equity in its loss insurance
company, PT Asuransi Andika Energindo, he said. (fhp)

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