APSN Banner

Industries feel the pinch from massive blackouts

Source
Jakarta Post - August 19, 2005

Jakarta – The massive blackouts that swept parts of Java and Bali have caused industries to suffer billions of rupiah in financial losses due to disruptions in their operations.

The Indonesian Textile Association estimated that more than 100 spinning, weaving and garment industries in Greater Jakarta suffered losses of about Rp 55 billion (US$5.53 million).

"Many of our members complained that their machines stopped operating for six hours plus, (and it took) an additional two hours to warm up the machines soon after the power went on again," association executive secretary EG Ismy said on Thursday.

That figure, he added, did not include the extra losses from the delays of shipments to customers.

At 10:23 a.m. on Thursday, a glitch in 500 kilovolt (kv) transmission line between Cilegon and Saguling in West Java cut state utility company PT Perusahaan Listrik Negara (PLN)'s power supply and caused several power plant units to disengage from the network.

Elsewhere, the Indonesian Automotive Parts and Components Industries Association executive Yos Rizal Anwar said many businesses in the automaker support industry shut down for up to eight hours due to the blackouts. He estimated losses of more than Rp 400 million for each company.

"If this (blackout) continues, it will make our products less competitive than China or India's manufactured goods. It also happened not long after PLN announced its plan to increase the electricity price for industry," he said.

Both Ismy and Yos called on PLN to provide an international-standard service if it wanted the industry to pay "international rates" for power.

Many large offices and industries did, however, have backup generator systems in place. "Alhamdullilah (Thank God), we didn't have any problems at the JSX," bourse administration director Wawan Setiamihardja said.

Wawan said all computers at the capital market were connected through an uninterrupted power system that enabled them to continue working for the hour that power was disrupted.

In Surabaya and Semarang, star-rated hotels did not experience blackouts, also switching to generator power supplies.

Hyatt Hotel Surabaya spokesman Prima Soemarso said it would be uneconomic for hotels to rely on generators if PLN's power supply was disrupted for a long period.

"If we keep using the generators, our operational costs will increase drastically," he said.

Country