Electricity tariff hikes criticized<\/p>\n
JAKARTA (JP): Members of the House of Representatives (DPR),
\nbusinessmen and economic analysts shared concern that next
\nmonth's electricity tariff hikes will hit small-scale subscribers
\nand consumers of goods.<\/p>\n
"I am afraid that the tariff hikes will be used as a reason to
\nincrease prices of consumer goods and industrial products by
\nmarket players," Iskandar Mandji, a member of the DPR's
\nCommission VI, told The Jakarta Post here on Saturday.<\/p>\n
He reminded that increases in electricity tariffs are
\ngenerally followed by rises in consumer goods and other products.<\/p>\n
"I therefore call for the government to improve its control on
\nmarket activities to assure the public on the stability of
\nconsumer goods' prices, otherwise the small consumers will be
\nbadly affected," he said.<\/p>\n
He also questioned on the government's policy to increase the
\nelectricity billing rates by an average of 7.68 percent.<\/p>\n
The tariff for small households with a capacity of between 60
\nvolt amperes (VA) and 200 VA, for example, will increase by 7.52
\npercent to Rp 71.50 per kilowatt hour (kWh).<\/p>\n
On Friday Minister of Mines and Energy I.B. Sudjana announced
\nthat the government has also allowed the state electricity
\ncompany PT PLN to make tariff adjustments every three months on
\nthe basis of the impacts of inflation, depreciation of the
\nrupiah, increases in fuel prices and electricity charges
\ndetermined by privately-run power generators.<\/p>\n
Sri Bintang Pamungkas, a member of DPR's Budgetary Commission,
\nsaid that it was not a good way for the government to burden
\nsmall consumers with limited and fixed incomes for the sake of
\nPLN.<\/p>\n
"If PLN needs big investments, it can issue bonds and shares
\ninstead of increasing electricity tariffs," he said, adding that
\nhe preferred to see a higher increase in electricity tariffs for
\nthe industrial sectors due to their good financial capability.<\/p>\n
Ignorance<\/p>\n
Zumrotin, chairperson of the Indonesian Consumer Protection
\nAgency, said that the tariff hikes show the government's
\nignorance of the conditions of poor consumers.<\/p>\n
Mubha Kahar Muang, a member of the Budgetary Commission, said:
\n"I don't agree that PLN should increase its billing rates for
\ncollecting money to financing its projects. I would say that
\nPLN's improvement of its efficiency is a better way of collecting
\nmoney."<\/p>\n
She was quoted by Kompas daily as saying that due to
\ninefficiency of operation, PLN's losses in the distribution and
\ntransmission activities have thus far reached over 12 percent of
\nits generation output.<\/p>\n
"Our study showed that one percent loss is worth Rp 58 billion
\nper annum," she said.<\/p>\n
She also complained that the calculation of the planned three-
\nmonthly tariff adjustment will be too difficult for the public.
\n"I am afraid that the complicated calculation will be an
\ninstrument of manipulation and irregularities," she reminded.<\/p>\n
Chairman of a major hotel and property business Sahid Group,
\nSukamdani S. Gitosardjono, said the increase in electricity
\ntariffs for industry will unavoidably affect production costs.<\/p>\n
"I honestly say that the electricity tariff hikes will have
\nbad impact on the industry, which will in turn affect buyers," he
\nsaid.<\/p>\n
Hotel<\/p>\n
"On the hotel industry, I estimated that the new electricity
\ntariffs will raise operational costs by around four to five
\npercent," he added.<\/p>\n
The hotel industry will face an increase in electricity
\ntariffs by over eight percent. For small-size hotel industry, for
\nexample, with a capacity of between 250 VA and 99 kilovolt
\namperes (kVa), the rates will increase to Rp 142.64 per kWh from
\nRp 129.89 per kWh.<\/p>\n
Yulia Hasan, director of MWM Garment Corp., said that the
\nelectricity tariff rises will extremely hit the textile industry,
\nwhose activities mostly dependent on electricity.<\/p>\n
She disagreed with the government, which contended that the
\nnew electricity billing rates are still the lowest in Asia and
\nthe Pacific.<\/p>\n
"The problem is that Indonesians' purchasing power is still
\nrelatively low," she added.<\/p>\n
President of PT Great River Industries Sunyoto Tanudjaya said
\nthe tariff hikes will increase costs for garment production by
\nabout two percent.<\/p>\n
T. Palgunadi, president of PT Astra International, said that
\nthe impact of the tariff hikes on the automotive industry is
\nsmall.<\/p>\n
"I have a positive opinion on the new tariff policy. The
\npolicy will in fact force the industrial sector to improve
\nefficiency, which is very important to anticipate fiercer
\ncompetition during the new era of economic liberalization," he
\nargued.(fhp)<\/p>\n
Editorial -- Page 4<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/electricity-tariff-hikes-criticized-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }