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Baliís Continuing Electrical Power Crisis

Growing Demand and Slowed Capacity Building is Adding Strain on Java-Bali Power Grid.

(1/5/2008) The Chief Director of the State Power Board (PLN), Eddie Widiono, has declared that the Java-Bali power grid will continue to suffer shortages in 2008.

Widiono said that increasing fuel costs throughout 2007 for Indonesia's industrial and manufacturing sectors are causing companies that once supplied some of their own power needs to now turn to PLN to meet their energy requirements. This is causing an increased power burden for PLN and reducing the available reserves and margins held by the Statre-owned company.

Widiono explained that the growing dependence on PLN against a shortfall in new power supplies is forcing PLN to relay increasingly on critical fuel supplies to produce electricity.

More Demand Than Supply

The State Budget for 2008 allocated only 9.1 million cubic kiloliters of fuel for PLN while the current need by the State Power Board is 10.6 million cubic kiloliters. Of the total Rp. 139 trillion (US$14.63 billion) PLN operational budget some 60% is expended on fuel.

PLN has advanced the maintenance schedule by one year to 2008 on some of its main power generating stations to ensure uninterrupted service during the crucial election year of 2009.

To curve the shortfall in power supplies PLN will introduce limitations on new power supply requests together with price disincentives to curve power consumption.