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Thu, 11 Oct 2001

JP/PLN, Philips sign MoU to support energy conservation

PLN, Philips sign MoU to support energy conservation

Moch. N. Kurniawan, The Jakarta Post, Jakarta

The state-owned electricity company PLN and PT Philips Ralin Electronics signed a memorandum of understanding (MoU) on Wednesday to support the government's energy conservation program by helping to market the latter's energy efficient light bulb products for households and road lighting.

The MoU was signed by PLN director for distribution and marketing Tunggono and Philips Group's Indonesia president Carel Timiniau.

The MoU will be effective for five months starting January next year, but may be extended following an evaluation.

Under the agreement, PLN will help sell to its customers 10 million of Philips's energy efficient light bulbs or compact fluorescent lamps (CFL) worth Rp 200 billion (US$20 million).

PLN will sell an 8-watt CFL at a price of Rp 20,000, but customers will be able to pay off the light bulb via installments of Rp 2,000 per month for 12 months.

The company will start selling the CFL in the country's big cities such as Semarang, Surabaya and Denpasar.

Foeng Sugiman, Philips Ralin commercial manager, said that the program would provide many benefits to the people, PLN and the state.

He said that the light produced by an 8-watt CFL bulb was equal to that produced by the common type of 40-watt bulb.

He also said that PLN would be able to save around 320 megawatts of power, valued at $448 million, and fuel worth Rp 5 trillion if the program met its aim of selling 10 million units.

Tunggono said the program would help PLN minimize the impact of a possible power crisis in the next couple of years, with PLN power generating capacity tipped to grow by only 5 percent per year, lower than the projected power demand growth of 7-11 percent.

"We're optimistic about this program," he said, adding that PLN also hoped to be able to cooperate with other companies.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro and director general of electricity and energy utilization Luluk Sumiarso witnessed the signing ceremony.