Japanese firms submit protest at the blackouts
The Jakarta Post quoted :
A group of Japanese pressure in Indonesia, supported by the Embassy of Japan, has filed a protest with the Indonesian government and state enterprise energy utility company during the recent series of power blackouts.
In his recent letter of complaint to the government, the Jakarta Japan Club (JJC) said that the frequent blackouts are likely to have "a significant impact on the future business enterprises" in Indonesia.
According to a survey JJC its 414 members throughout the country, conducted between May 25 and June 13 of about 42 companies had accumulated losses worth 41 million rupees (U.S. $ 4.444 million) due to frequent blackouts.
JJC president Seiji Komura said the power cuts had led to defects in products and damage to production facilities, mainly in the chemical industry, tire manufacturing and precision parts factories.
"The total damages and costs include costs to restart production lines and labor costs for additional companies operating in Indonesia," Komura said.
He said the group conducted the survey because officers could not get clear answers about the blackouts.
"Our members complained because they could not receive adequate advance information on the electricity supply," he said.
"And this has had a significant negative impact on their businesses."
The survey found that companies had suffered an average of three days of blackouts, with a maximum of six days.
The survey also revealed that in 70 of 112 cases, companies have experienced power cuts without any prior notice, causing sudden stop to production processes.
From state-owned power utility company PT Perusahaan Listrik Negara (PLN) has repeatedly attributed to the power supply shortage in the supply of coal and gas for its power plants. In some cases, PLN blamed the weather for delays in shipments of coal to their plants.
The JJC sent a letter of complaint on July 3 for PLN president director Fahmi Mochtar, Energy and Mineral Resources Minister Purnomo Yusgiantoro, Coordinating Minister for Economy Sri Mulyani Indrawati, Japanese Ambassador Kojiro Shiojiri in Indonesia and Indonesian Chamber of Commerce and Industry president Mohammad Hidayat .
The letter is the first complaint of advertising to foreign companies regarding the country's energy management.
Komura urged PLN to provide relevant information on any planned blackouts, even when the power is reconnected, so that companies could adjust their hours of operation.
The group also demanded that PLN take appropriate measures regarding the supply of electricity, including the adoption of urgent measures to tackle the shortage of supply and implementation of medium and long-term power development plans.
The Indonesian Chamber of Commerce and Industry vice president for industry, Rahmat Gobel, said the letter is expected to be a wake-up call for the government to immediately resolve the power crisis.
"I do not be surprised if companies decide to eventually withdraw from Indonesia," he said.
"The blackouts are just one of many protracted problems that deter foreign investors from entering the country."
