"We have been late in developing the necessary infrastructure."
Jakarta (ANTARA News) - State-owned electricity company PLN has been inefficient in using its primary raw materials because of inadequate infrastructure facilities for gas distribution, according to Coordinating Minister for Economic Affairs Hatta Rajasa.

"We have been late in developing the necessary infrastructure. We have gas stocks in Kalimantan, Papua and Maluku, while the industries are located in Java and Sumatra," he said here on Thursday.

"As revealed by the State Audit Board (BPK), PLN's inefficiency is because of its inability to implement its electrification programme. And that is because many of its generators still use diesel oil," Hatta explained.

"PLN is willing to widely implement its electrification programme in order to reduce power outage, but it all becomes a very expensive proposition considering its generators use diesel oil. Besides, there is not enough gas supply yet, due to which many generators continue to use diesel," he continued.

Hatta expressed hope that efforts to provide adequate gas supply for power generators would be stepped up in light of the fact that the government is encouraging the use of natural gas for domestic consumption.

"In the past our policy regarding energy was to sell it to build up our foreign exchange reserve, but now we have to correct. If we have enough gas, it should be for meeting domestic requirements or for the needs of fertilizers and other industries, including PLN, so we can increase our energy production," he said.

"Among the things that we can use to optimise gas distribution are floating storage regasification units (FRSU)," Hatta noted.

"Now we have set up an FRSU in the Java Sea, which should be soon used as a gas distributing terminal for PLN and other industries," he stated.

Based on a BPK report, PLN failed to operate efficiently, including in using primary raw fuels for its generators, which amounted to losses worth Rp37.8 trillion.

The report pointed out that the state-owned company had lost the opportunity to save fuel oils worth Rp17.9 trillion in 2009 and Rp19.6 trillion in 2010.
(Uu.A014/INE/KR-BSR)

Editor: Priyambodo RH
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