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APR Energy Decides to Postpone the Plan to Leave Nias

Tabita Diela
June 4, 2016 | 12:37 pm
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Jakarta. APR Energy, a Jacksonville-based power provider, has decided to keep the power on in Nias Island, North Sumatra, temporarily while it waits for state utility company PLN to pay its debts to the company, a top executive said in an open letter on Friday (03/06).

"APR Energy has decided to continue to support the people of Nias by keeping the power on through June 11," John Campion, APR Energy chairman and chief executive, said in an open letter to the people of Nias.

"In return, we expect PLN to honor its commitments to pay monies owed to our company, to provide necessary support as APR Energy demobilizes our plants, and to provide a smooth transition of power generation to the people of Nias."

Nias suffered from blackouts for almost two weeks in early April as the state utility company PLN failed to pay its $2.04 million debt to APR Energy who manages two 10-megawatt capacity power plants in the island.

APR Energy suspended operations for 12 days from March 31 until PLN paid a portion of the outstanding amount due.

According to APR, PLN still owe the company $950,000 as of May 17 from previous operations.

“We regret the impact that shutting down our plants once again will have on Nias residents and businesses,” Campion said in a separate statement.

APR then announced it would shut down its power plants permanently at the end of May as the company chose not to renew its contract in the island and anywhere in Indonesia due to "continued non-payment" and "other contractual issues."

The blackout has caused tremendous financial losses as among 800,000 Nias people were forced to temporarily close businesses during the blackout, while students prepared for their national finals examination on April 4 to 7 without lighting.

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