Govt may lower planned hike in fuel prices<\/p>\n
JAKARTA (JP): The government said on Wednesday that increases
\nin electricity rates and power prices would likely be lower than
\nthe initially proposed 35 percent and 20 percent respectively.<\/p>\n
Minister of Mines and Energy Susilo Bambang Yudhoyono said the
\ngovernment was negotiating with the special team formed by the
\nHouse of Representatives on the rate of increases for both
\ncommodities.<\/p>\n
\"I am confident the increase in electricity prices can be
\nlowered, and I hope the fuel hike can also drop below 20
\npercent,\" Bambang said on the sidelines of a meeting with the
\nHouse's power and fuel tariff team.<\/p>\n
The government indicated in November 1999 that it would cut
\nsubsidies on fuel and electricity by raising their respective
\nprices by 20 percent and 35 percent as of April this year.<\/p>\n
Bambang said the special team set several conditions for the
\nincreases and \"we have reached agreement on several points\".<\/p>\n
He said the government and the team agreed that small-income
\nconsumers must be protected from the subsidy cuts.<\/p>\n
Bambang earlier stated the government was committed to
\nexempting low-income consumers from the hikes, indicating that
\nsmall households and public transportation would continue
\nreceiving subsidies.<\/p>\n
He said the team also demanded the government be selective in
\nproviding subsidies to the public to keep the affluent from
\nbenefiting.<\/p>\n
However, several issues, including government-led negotiations
\nwith independent power producers (IPP), were still under
\ndiscussion with the team, he said.<\/p>\n
The team would reject any proposed hike in electricity rates
\nif it was necessary due to inefficiency in the performance of
\nstate electricity company PT PLN and the state company's failure
\nto obtain power supplies from IPPs at fair prices.<\/p>\n
PLN estimated the cost for the purchase of IPPs' electricity
\nwould reach some Rp 9 trillion (US$1.2 billion) this year.<\/p>\n
Some minor technical issues have also been discussed, such as
\nwhether profit-oriented hospitals should be classified as social
\ninstitutions entitled to receive government subsidies, Bambang
\nsaid.<\/p>\n
Head of the team Pramono Anung said the team aimed to keep
\nelectricity and fuel hikes as low as possible.<\/p>\n
\"I can't say any figures, but we're expecting half of what the
\ngovernment proposed.\"<\/p>\n
He added the team was preparing arguments to justify the
\nincreases.<\/p>\n
Last year, several House members suggested electricity rates
\nand fuel prices be increased by only 20 percent and 10 percent
\nrespectively.<\/p>\n
However, Pramono said it was not a final proposal of the team.
\n(03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-may-lower-planned-hike-in-fuel-prices-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}