Blackouts Are Prabowo’s Latest Problem
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Welcome to Foreign Policy’s Southeast Asia Brief.
The highlights this week: Indonesia suffers through rolling blackouts, Bangkok’s popular mayor wins reelection, and residents in Hanoi protest ambitious plans to rebuild the capital.
Welcome to Foreign Policy’s Southeast Asia Brief.
The highlights this week: Indonesia suffers through rolling blackouts, Bangkok’s popular mayor wins reelection, and residents in Hanoi protest ambitious plans to rebuild the capital.
Blackouts Hit Rocky Indonesia
Why can’t one of the world’s biggest coal producers keep the lights on?
Through June, Indonesia has faced rolling blackouts across the archipelago. The government says the problem has now been resolved. But an industry insider countered that this is a “complete lie” and warned that worse may be to come.
To blame is not, as you might suspect, the global energy shock. Instead, the government has admitted after some early denials that the problem is a shortage of coal. And this can be traced back to the government’s own mismanagement.
In recent weeks, blackouts have been reported in Java, Sumatra, Bali, and Indonesian Borneo. Java, which contains more than half of Indonesia’s population and is the country’s economic hub, seems to have been worst affected. Areas of Bekasi, Bogor, and Depok—cities on Jakarta’s periphery—went without power for several days.
The economic effects are harsh. Initial estimates of the losses already caused by blackouts vary from $173 million to $562 million.
These blackouts will only add to the growing perception that Indonesia’s government and economy are increasingly dysfunctional. Business leaders have expressed concern that fear of blackouts will become yet another factor deterring businesses from investing in the country.
It is also another blow for President Prabowo Subianto, who came into office promising faster growth and self-sufficiency. His nationalist economic proscriptions have caused turmoil across Indonesia’s economy.
Power cuts that hit people’s daily livelihoods could be a potent political issue. August of last year saw Indonesia’s worst riots since 1998 and took place against the backdrop of rising food prices.
Heading into summer, the situation looks potentially volatile again. On top of the power cuts, prices of food and fuel are once again rising. And students are already taking to the streets to protest economic mismanagement.
For years, Indonesia actually had more electricity generation capacity than it needed in key areas such as Java due to overbuilding in the 2010s.
Most of its capacity........
