Power Outages Disrupt Industrial Activity, HKI Says Investors Need Security
The Indonesian Industrial Estates Association (HKI) has called on the Ministry of Energy and Mineral Resources (ESDM) and state electricity firm PT PLN (Persero) to strengthen the reliability of the national electricity system after power outages occurred in several parts of Java.
HKI Chairman Akhmad Ma’ruf Maulana stated that a reliable power supply is a fundamental necessity for industrial estates. Disruptions to the electricity supply, even for a limited duration, can impact production activities and the distribution of goods.
Ma’ruf said he has received various reports regarding the blackouts in several areas of Java. While understanding that technical disturbances can occur in a large electricity system, he believes a thorough evaluation and mitigation measures must be taken immediately to prevent similar incidents from recurring.
“The most important thing is to ensure that the evaluation process is comprehensive, corrective steps are taken as quickly as possible, and future mitigation is stronger,” he said in an official statement on Friday.
Ma’ruf explained that the reliability of the electricity supply has become a crucial factor for the industrial sector, especially as the government is currently promoting a downstreaming agenda, increased exports, data centre development, and the entry of new investment into various regions.
All of these agendas, he noted, require stable and reliable energy infrastructure support. In fact, the certainty of electricity supply is a primary consideration for investors when deciding on an investment location.
“Electricity reliability is one of the main considerations for investors when determining an investment location. Certainty of energy supply provides a sense of security for businesses in planning long-term expansion and business development,” Ma’ruf clarified.
Following the recent blackouts, HKI has sent a letter to the Minister of Energy and Mineral Resources, copied to the President Director of PLN and governors across Indonesia. In the letter, HKI proposed a comprehensive evaluation of the causes of the electricity system disruption, covering aspects from generation, transmission, and distribution to the adequacy of power reserves.
Furthermore, the industrial estate management organisation is also encouraging the strengthening of electricity infrastructure in strategic industrial areas to achieve a higher level of reliability.
HKI also proposed that industrial estates receive prioritised handling when electricity system disturbances occur. According to Ma’ruf, industrial estates are centres of production, export, investment, and employment that contribute significantly to the national and regional economy.
“We hope for a faster coordination mechanism between PLN and industrial estate managers when disruptions occur. Accurate information and certainty of recovery time greatly assist business actors in managing their operations,” he stressed.
Looking ahead, HKI is pushing for the acceleration of backup power system development, increased network capacity, construction of substations in rapidly growing industrial areas, and the utilisation of more modern system monitoring technology.
In the long term, HKI also sees the need for broader scope for the development of captive power plants, utilisation of new and renewable energy, and the development of electricity business areas in certain industrial estates as part of efforts to strengthen national energy resilience.
“The growth of Indonesian industry will continue to increase energy needs. Therefore, the national electricity system must continue to be strengthened to keep pace with business needs and maintain Indonesia’s competitiveness as an investment destination,” Ma’ruf concluded.