Showing posts with label Electricity. Show all posts
Showing posts with label Electricity. Show all posts

Wednesday, March 16, 2011

Indonesia is a Potential Geothermal Superpower

During the Asia Pacific Summit for the Climate Project in Jakarta last January, Nobel Prize Laurette and former US Vice President Al Gore said that Indonesia has the potential to become the world's Geothermal Energy Superpower.

Al Gore has reason to say that because according to U.P.I Indonesia claims about 40 percent of the world's geothermal reserves
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Last March Indonesia's Energy and Mineral Resources Ministry revised the country's geothermal potential to 28,100 megawatts, up from 27,000 megawatts a decade ago.

The ministry's geological agency said that with 30 years of operation, Indonesia's revised geothermal potential is equal to 12 billion barrels of oil. That compares with the country's current oil reserves of 6.4 billion barrels.

Under Indonesia's national energy policy, the government aims to obtain 95,000 megawatts of power from geothermal sources by 2025. Less than 1,200 megawatts of geothermal energy has been explored.

I hope that the government would immediately carry out its plan to develop Geothermal power as a source for electricity, so that we do not have to build a nuclear reactor in the near future.

Tuesday, July 20, 2010

Govt will Review Electricity Hike

Last month, the government announced that there will be an electricity hike of 10% to 18% starting 1 July 2010.

Although the electricity hike excludes households using less than 90 Watts of electricity, but this decision has been widely protested especially by  the industries that stated that the increase is actually many times higher than the average 15% declared by the government.

For example, the association of textile industries and association of furniture industries alleged that the increase would be more than 40%. They said that if the electricity hike is not delayed or revised they would not be able to make and sell products that would compete with cheap products freely imported from China. Which means that they would have to stop business operation and more than 10 million their workers would be out of job.

In response to the above protests, the Coordinating Minister of Economy Hatta Rajasa (a technical engineer) announced that the government will review the electricity hike and limit it to18% max. for industries.

Although I am glad that the government decided to reconsider the electricity hike rate, however I am very sad that the hike has not been made based on careful and accurate calculations that it has to be reconsidered only 2 weeks after its implementation.

Here are some related articles that I quoted from The Jakarta Globe :

Industries Shocked By Steep Electricity Hikes
Govt Will Rethink Electricity Hike Rate
Indonesian Government Puts Cap On Electricity Rate Hike

Thursday, June 17, 2010

Electricity Hike

On Tuesday, the House of Representative (DPR) has approved the plan of state owned electricity company PLN to hike electricity rate by up to 18% starting 1 July 2010.

According to the Minister of Minings and Energy Darwin Saleh, PLN would not free 31 million households using less than 450 VA from paying electricity, as earlier proposed by its Director, but will exempt them and others using between 450 VA and 900 VA from the hike.

Around 5,9 million other households will pay up to 18% more, commercial customers between 12 to 18% more, industry 6 to 15% more and government offices 15 to 18% more.

The plan received various reactions from inside and outside of the DPR. The member of the ruling coalition Justice Welfare Party (PKS) and opposition Indonesian Democratic Party in Struggle (PDIP) rejected, while the Indonesian Consumers Association (YLKI) agreed.

However, what really bothers me is that the news media do not seem to be very interested in this electricity hike, which can be seen from the fact that the number of news reports/articles about this is lower than reports/ articles about the Sex Video Scandal.

This is very sad, considering that the hike would surely effect the economy and the life of the people which are currently not in good condition.

Related media reports :
- Poorest Indonesians Spared Pain from Power Price Hike
- Govt not likely to support Free Electricity for the Poor.

Monday, June 14, 2010

Electricity for the Poor and for the Rich

Last Saturday, President Director of the State Electricity Company (PLN) i.e. Dahlan Iskan, proposed the government and the House of Representative (DPR) to free poor people from paying electicity, and increase electric tariff for rich people.

Considering that PLN has been unable to supply suficient electric power to its 40 million consumers in recent years, this proposal has received mixed reactions from members of DPR.

Please find below an article about this that I quoted from The Jakarta Globe.

A proposal to provide free electricity for the poor and hike rates for the rich has received mixed reactions from the House of Representatives.
A proposal to provide free electricity for the poor and hike rates for the rich has received mixed reactions from the House of Representatives.

‘Free Electricity for Poor’ Plan Gets Mixed Reviews 

A proposal by a state enterprise executive to make electricity free for tens of millions of poorer Indonesians and hike power rates for the rich has received mixed reactions from lawmakers.

Dahlan Iskan, president director of state-owned power company PT Perusahaan Listrik Negara, on Saturday urged the government and the House of Representatives to free users with an hourly average of less than 450 watts from having to pay the basic electricity tariff, or TDL.

Dahlan said the bulk of this group were the country’s poorest people, and made up half of PLN’s 40 million subscribers. As subscriptions usually mean a household, the move would potentially help 20 million families.

Dahlan said it should come before the TDL is raised by a planned average of 10 percent in July. If the government is really out to help the poor, he said, “the best thing to do would be not to charge the poor for their electricity usage.”

Only Golkar aired support for the proposal, with its faction secretary, Ade Komarudin, saying subsidies should not be given to those undeserving.

“But there must be a rigid scheme, that this is only for the poor,” he said, using the occasion to defend Golkar’s widely criticized proposal to give each lawmaker Rp 15 billion ($1.6 million) to develop his or her constituency as another pro-people move.

Sutan Batugana, a lawmaker of the ruling Democratic Party sitting on Commission VII that deals with energy affairs, aired opposition to the scheme.

“Some think everything that is free is good, but I don’t agree,” he said. “I asked Dahlan Iskan already, why would you say all this when PLN still owes Rp 25 trillion to state oil and gas firm Pertamina? Don’t teach people to be lazy.”

Commission VII deputy chairman Effendi Simbolon, from the Indonesian Democratic Party of Struggle (PDI-P), said the company should carefully study the financial consequences of the policy in detail before officially proposing it to the legislative.

“It was an unofficial statement, but if he [Dahlan Iskan] is serious, he needs to do his homework and submit a proposal to the commission,” Effendi said.

He said the scheme would be unfair to the country’s working class as they would end up having to pay more for electricity. “We shouldn’t teach the nation to hate people with money.”

Prosperous Justice Party (PKS) secretary general Anis Matta said it had yet to decide its stance, but was leaning toward disagreeing with the idea. “Rich people are also paying a higher burden of taxes. I think this needs to be studied a lot more before we decide anything.”

M Romahurmuziy from the United Development Party (PPP) said PLN should have discussed how a plan like this might work with the Energy Ministry before making it public, and throwing ideas around that don’t make good economic and social sense would only disappoint people.

Dahlan said that if large consumers of electricity, or those using above 1,000 watts per hour, were to pay prices based on actual production costs for a year, it would add an extra Rp 28 trillion to PLN’s annual revenues.

Dahlan also vowed to make PLN a more transparent state-owned enterprise and to figure out ways to make the entire agency less bureaucratic.

“I have proposed the Corruption Eradication Commission [KPK] to have direct access to our procurement procedures, and the State Audit Agency [BPK] direct access to our finances.”