Some provinces of Indonesia are experiencing electricity shortage at the moment. The long postponed 10000 MW power generator project has not been kick-started, millions of household across the archipelago are not using electricity efficiently and corruption is rampant in the National Electricity Company (PLN). Thus, PLN introduces scheduled electricity breakdown for all.
As a result, manufacturing industries are suffering from millions of dollars losses. In recent case, Daihatsu plant in Jakarta reported that 10 cars which were being assembled at the time of the breakdown, were not functioning properly; they became a mountain of scrap metal. This incident worries domestic and foreign investors who want to expand their business here. Moreover, domestic textile factories are complaining to the government that electricity shortage will put them at the disadvantage side in global market for they have to pay penalty when unable to ship on time.
In addition to that, electricity shortage prevents foreign investors to invest their money. They prefer to invest in countries which have better infrastructure for they want factories to give maximum output. Therefore, with ailing infrastructure and poor domestic investment, there is no enough job opportunity for Indonesia’s 60 millions productive workforce, which contributes to the increasing numbers of employment over the years.
As this country is becoming more relied to tax than ever, unemployment means unexploited potential source of income. With limited budget to build and revitalized infrastructure, infrastructure growth will not balance the demand for industrialisation. Moreover, unemployment will lead to high crime rate in cities which will prevent investors to venture because of safely reason. Hence, the loss is exponential.
In conclusion, the crisis will definitely be a serious problem for further economic development and social cohesion. The widening income gap will cause dissatisfaction amongst people and radicalisation may triumph. Something has to be done immediately.