Wed, 24 Nov 2004

Government claims power shortage has subsided

Leony Aurora, The Jakarta Post, Jakarta

The number of areas across the country suffering a power shortage has declined by more than 50 percent, or less than 10 regions, a top energy ministry official has said.

Ministry of Energy and Mineral Resources Secretary-General Luluk Sumiarso, speaking on Tuesday on the sidelines of the National Energy Congress, said more than 20 areas had previously been battling a shortage of electricity.

One measure taken by state power firm PT PLN to solve the power shortage was to develop a transmission network linking South Sumatra and West Sumatra.

"We have substantial water potential in West Sumatra (to move power plants' turbines)," said Luluk. "When water is abundant, electricity can be transmitted to the southern areas (of Sumatra)."

Several areas suffered power shortages a few months ago, when the water level in reservoirs used by hydropower stations dropped during the dry season.

West Sumatra, Riau and Jambi were among the provinces that experienced long and frequent power cuts, which were carried out on a rotation system by PLN branches to conserve the local power supply. The provinces lost power for three to six hours a day, and sometimes for six to 10 hours a day.

Power has become an increasingly serious issue over the past few years, as demand continues to grow but supply remains stagnant due to a lack of investment.

PLN has said it would need some US$5 billion in new investment for the 2002-2006 period and $28.5 billion over the next 10 years.

Chairman of the Indonesian National Committee of World Energy Council Hardiv Situmeang reiterated the urgency for the government to promote the use of renewable energy.

"Studies have proved that in the long term, (power) plants using renewable energy are more sustainable (than those using fossil fuel)," Hardiv told reporters.

To make renewable energy projects more attractive, investor incentives, such as eligibility to engage in emission trading under the Kyoto Protocol, should be provided, he said.

The protocol, which will come into effect early next year, commits 55 industrialized nations to making significant cuts in the emission of greenhouse gases by 2012.

One means of fulfilling the protocol is to provide funds for sustainable projects in countries that do not have emission reduction targets.

"The government needs to speed up the establishment of a national body to offer such projects to industrialized countries," said Hardiv. "Otherwise, other better-prepared countries like Vietnam, Malaysia and India will outrun us."