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Go to comments November 12, 2009

Reva Sasistya

PLN president director Fahmi Mochtar pointing something out to State-Owned Enterprises Minister Mustafa Abubakar during the minister’s visit to PLN’s Cawang facility on Thursday. (Photo: Yudhi Sukma Wijaya, JG)

PLN president director Fahmi Mochtar pointing something out to State-Owned Enterprises Minister Mustafa Abubakar during the minister’s visit to PLN’s Cawang facility on Thursday. (Photo: Yudhi Sukma Wijaya, JG)

End Jakarta Blackouts or Else, Minister Tells PLN Bosses

State-owned Enterprises Minister Mustafa Abubakar on Thursday said he had given the regional management of PT Perusahaan Listrik Negara (PLN) until the first week of December to end the blackouts that have plagued Jakarta and surrounding areas in recent weeks, or face “serious sanctions.”

However, the buck, it seems, might not reach the all the way to the top. Mustafa avoided the question of whether he would sack any of the company’s board of directors.

During a visit to PLN’s central facility in Cawang, where the city’s problems originated after a key generator was damaged by a fire in September, Mustafa said PLN’s general manager for Jakarta and Tangerang and its director for the Java-Bali region had guaranteed him that the area’s customers would not suffer from any more rolling blackouts beginning on Dec. 1.

They promised to fix the Cawang facility and secure additional power supplies for the city by early December, Mustafa said.

“You have heard of the deadline [for PLN to fix the problems]. Should there be a good performance, I will give bonuses, special promotions. But if the deadline passes and the problems cannot be fixed, there will be sanctions on each of the officials,” said Mustafa, the former president director of the State Logistics Agency (Bulog).

“It could be a delay in promotions or a downgrade of positions. They may not still be sitting in their positions. By the end of this year, we will evaluate all of their performances,” he said.

However, Mustafa declined to say whether he might dismiss some of PLN’s directors.

“It has not been thought out that far yet,” he said.

When asked about Mustafa’s statement, PLN president director Fahmi Mochtar noted that a carrot-and-stick system was common in most companies.

However, Bambang Trisulo, chairman of the Indonesian Automotive Industry Association (Gaikindo), said Mustafa had taken the wrong approach by offering incentives for fixing the city’s power problems, especially given their high cost for companies in the region.

“This is not something new. Blackouts have been happening in this city quite often. Why are such remarks only made when the situation is critical? Even for the scheduled blackouts it has cost us. Now there are unscheduled blackouts,” he said.

“It is definitely burdening us with soaring costs that they cannot pay back even if they promise to give us a 10 percent power bill discount,” Bambang told the Jakarta Globe.

On Wednesday PLN said it would give a “discount” to consumers and businesses affected by the blackouts.

Fahmi claimed the discount was “10 percent of the bill.”

However, Tulus Abadi, chairman of the Indonesian Consumer Protection Foundation, said the discount was actually 10 percent off a fixed monthly service charge.

The maximum savings for individual households would be just Rp 20,000 ($2.12),” he said.



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Comments

Valkyrie

8:09 AM November 14, 2009

what makes you an expert on coal fired power plants?

Valkyrie

4:19 PM November 13, 2009

Getting soft on your observations simon? Where's that "feisty" character of yours gone to?

Guess too much of Yorkshire Pudding with the toad in the middle. Aha!....now you know eh? It's a new territory mate!

Simon P

1:12 PM November 13, 2009

I believe this problem goes back years to an unwillingness to wean off coal fired power plants over last decade or so.

tamtomo

11:15 AM November 13, 2009

Negligence and incompetency of the senior members of PLN have been open wide for everyone to see.

Doctors can be sued for negligence, Contractors can be penalized for it too! PLN "hotshots" can/may be given bonuses and special promotions for similar offences.

Strange country we are living in. Let us remove this wool covering our eyes people and confront the fact that we are being managed by arrogant technocrats/bureaucrats. Someone wisely remarked during a talk show this morning on television that once an Indonesian is given authority he becomes intoxicated with arrogance.

highlighting one example:

Look at the bunch in commisssion III. Do we need more to show us that the very people we elected to represent us are the very people who appear to fall short of our expectations. Their arrogance is surely deplorable. Just wallop three knocks with the hammer and "you shut up!"

Do what I tell you to do but......We don't need the circus to be in town now.

Valkyrie

10:51 AM November 13, 2009

Yes! Yes! Yes!.....SACK them NOW...NOW...NOW.

We've had enough of their incompetence and "tidak peduli" attitude.

Mr Minister, you really mean to give them bonuses and special promotions if they succeed? You appear as incompetent as they are and now we know why Indonesia's SOEs need resuscitation.

They have committed a grievious error and should appropriately receive the consequences they deserve and NOT to be given an alternative.

Just observe the amount of inconvenience and losses attributed to their irresponsible behaviour. I would be tempted to even categorize their shortfalls as a "crime" against society.

It's going to be a very grave error Mr. Minister if you DO NOT remove the lot of them. Examples MUST be made so that those that follow will know the consquences of their misdeeds.

Justice demands it.......we demand it....the government MUST give it.

rigsby100

9:37 AM November 13, 2009

Dont lets forget that Bali is still suffering from rolling powercuts that is costing local business tourist dollars. Also i wonder how many of these tourists will be put off returning after having sat in the dark. Astonishing that this country seems to be going backwards in its ability to look after the tourist industry of Bali .ie Airport problems , Extortionate Booze tax and now we have the blackout !!!!!

peterR

6:16 AM November 13, 2009

For PLN to be in the position they are in, the management have proven themselves to be thoroughly incompetent at the very least. Publish the names of all of the Board of Directors so the public know who it is who is being paid fortunes for being useless and making their lives a misery. How bad exactly does it have to get for people to stop pussyfooting around. They have had years to put things in order and failed miserably. They are creating a major embarrassment to the nation and huge losses to both individuals and state: the damage and cost is incalculable.

Sack the lot of them, directors, senior managers, replace them all and do it now.