Indonesia is in the midst of an acute power shortage. Official estimates that some US$ 28.45 billion of additional investment in the nation's electrical power generating capabilities are required over the next 10 years to stave off the growing power shortage crisis.
Regular power outages in the Bali power grid point to a situation, expected to peak by 2003, in which the demand for electrical power exceed the current generating capabilities of the State Power Company (PLN). Under a new law, expected to soon receive Presidential approval, the private sector will be allowed to produce and sell electricity to the consumers. The current law only permits the private producers of power to sell electricity to PLN who hold a monopoly on the electricity market.
The liberalization of the electricity market is scheduled to commence in 2007 with Batam, Java and Bali slated as the trial-areas for free market competition. It is estimated that Bali's electrical requirements grow at an average annual rate of 13%.
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