Indonesia faces power crisis
Electricity supplies in Indonesia are heavily subsidised
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South East Asia’s largest economy is facing a big problem – how much longer can the state electricity company meet the country’s growing demand for power?
In February, the islands of Java and Bali – Indonesia’s economic powerhouses – both suffered blackouts.
The immediate cause, officials said, was bad weather, which meant coal supplies were stuck in ports. But the stoppages highlighted the national grid’s inability to keep the lights on, even in the capital, in the face of any kind of hiccup.
Indonesia’s economy is growing at about 6.3% a year. Its demand for electricity is growing even faster. To cope with this, analysts say, the state electricity company PLN needs to add 1500-2000MW a year to its capacity – and it is currently falling far short.
