Paiton?s workers launch strike

The workers of independent power producer PT Paiton Energy Company have launched a strike to force the firm to pay ?compensation? following plans by the largest shareholder Mission Energy of the United States to sell its stake to Mitsui of Japan, one of its partners in the firm.

State electricity firm PT PLN?s president Eddie Widiono confirmed the strike, but he said the operation of the power plant remained ?normal?

?The strike has not yet affected the power plant?s operation,? Eddie said on Thursday.

Based on the data owned by Petromindo.Com, the firm, which is better known as Paiton Swasta I, located in Probolinggo, East Java, has two power units each with the power generation capacity of 615 Megawatt (MW). However, PLN said in a press release that each of the power units has the capacity of 600 MW. Petromindo?s data further say that the power plant is 40 percent owned by Mission Energy, 32.5 percent by Mitsui and 7.5 percent by General Electric of the United States and 15 percent by local firm PT Batu Hitam Perkasa.

The US$2.43 billion, coal-fired power plant is among the main suppliers of power to the Java-Bali power grid.

It remains clear how much of its stake in the firm that Mission Energy plans to sell to Mitsui.

PLN?s director of primary energy and power generation Ali Herman Ibrahim said the strike mostly involved ?administrative? workers, while workers responsible for the operations of the power units were still doing their jobs.

PLN has held a meeting with Paiton over the issue. During the meeting, Paiton?s management promised to settle the dispute with the firm?s union with assistance from the Ministry of Manpower.

Paiton also guaranteed that its two power units would continue operations despite the strike.

According PLN?s press release, the installed capacity of the Java-Power grid now stands at 14,913 MW, while the peak load reach 14,235 MW. This leaves a reserve of 678 MW. (Godang)