Pertamina asked to show solidarity in dealing with power shortage

The chapter of the Indonesia Youth National Committee (KNPI) in Palembang has asked state owned oil company Pertamina and state owned fertilizer producer Pusri to show their solidarity in dealing the acute shortage in the electricity supply in South Sumatera.

Edward Jaya, the chairman of the organization's South Sumatera chapter, said that Pertamina and Pusri as state firms which had benefited much from the province's wealth and resources should show their solidarity in dealing with the electricity problem.

"Don't forget the electricity is the problem of the people and I don't think it will become a problem if Pertamina and Pusri cut their prices? don't just think the business aspect of the deals," he was quoted as saying by Sriwijaya Pos on Monday.

Pertamina and Pusri have promised t help PLN settle the power shortage problem by selling part of their electricity to the latter. But the contracts could not be realized because the prices offered by Pertamina and Pusri are too high for PLN.

Pertamina and Pusri offer prices of US$4.4 per kWh and $4.6 per kWh respectively but debt laden PLN's ability to buy is only at $3.7 per kWh. They had reached an agreement to settle the price at $4.1 per kWh at a recent meeting mediated by the province's senior officials. But the three companies later cancelled the agreement. (*)