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)