Article Abstract:
Indonesia's economic crisis is making it necessary to review the future of the country's electricity projects, which are worth very large sums of money. Indeed, Perusahaan Listrik Negara, the country's state-controlled power utility, is now planning to undertake a wide-reaching review of up to 25 of the 29 privately invested power-generation schemes. The company will probably state that it is unable to pursue the deals because of the negative impact of the currency crisis. This development could create problems for some of the leading constructors of private power plants in the world.
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Article Abstract:
Indonesian electricity distributor PLN has many problems. The state-owned company has amassed debts, operated inefficiently and sanctioned unnecessary expansion. The rupiah crisis forced it to inform suppliers in Jan 1998 that it would be paying only a portion of sums owed. PLN's situation exemplifies Indonesia's economic history and crisis, but it is also a major factor in the country's response to its difficulties, due to the international effects of its reneging on contracts, to the state finance it needs, and to the part which electricity plays in economic recovery.
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Article Abstract:
Political interference is broadening the spectrum of investors and builders at the Paiton power station in E Java, with higher electricity costs being one likely result. Three private consortiums and state utility PLNs each have different projects at the 4,000 megawatt complex, with different completion dates. One consortium, Jawa Power, includes Siemens, a utility named PowerGen, and Indonesian company Bumipertiwi Tatapradipta, while Paiton Energy consists of Mission Energy, GE, Mitsui, and an Indonesian firm.
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