Govt to hike electricity tariffs<\/p>\n
JAKARTA (JP): The government yesterday confirmed its plan to
\nincrease electricity billing rates by around three percent next
\nmonth.<\/p>\n
\"We will hold a meeting with leaders of Commission VI of the
\nHouse of Representatives (DPR) this week to seek their support
\nfor the planned tariff increase,\" Minister of Mines and Energy
\nI.B. Sudjana announced yesterday after opening a workshop on
\npower generation.<\/p>\n
The workshop was attended by visiting British Minister of
\nTrade Richard Needham and executives of some 40 British
\ncompanies.<\/p>\n
Sudjana said an increase in electricity tariffs is necessary
\nfor the state electricity company PLN to cope with inflation,
\ndepreciation of the rupiah and increases in fuel prices.<\/p>\n
Electricity billing rates are determined by the government
\nthrough a decree by the Minister of Mines and Energy.<\/p>\n
Director General of Electricity and Energy Development Artono
\nArismunandar, without showing any figures, assured that
\nIndonesia's electricity rates will remain the lowest in the
\nregion even after the planned hike.<\/p>\n
Sudjana said the government also plans to adjust electricity
\ntariffs every three months in line with developments on fuel
\nprices, depreciation of the rupiah and the country's inflation.<\/p>\n
Projects<\/p>\n
Director General of Electricity and Energy Development Artono
\nArismunandar said on Tuesday that the increase is urgent for PLN
\nto enable it to finance its power generation and distribution
\nprojects.<\/p>\n
\"You can imagine that PLN will need some Rp 45 trillion to
\nfinance generation and transmission projects in the coming five
\nyears,\" he said at a seminar on infrastructure.<\/p>\n
Both Sudjana and Arismunandar said that the government will
\nmaintain its policy of setting different electricity billing
\nrates for industry, commercial entities and households.<\/p>\n
\"It means that the cross subsidy among subscribers will be
\nmaintained,\" Sudjana said yesterday.<\/p>\n
Minister of Industry Tunky Ariwibowo announced after meeting
\nwith President Soeharto yesterday that the planned electricity
\ntariff hike will not hit the country's manufacturing industry
\nbecause electricity's contribution to production costs is mostly
\nsmall.<\/p>\n
Aburizal Bakrie, chairman of the Indonesian Chamber of
\nCommerce and Industry (Kadin), announced yesterday that the
\nplanned tariff rise will not affect exporting firms because it
\ncan be compensated by the steady appreciation of the U.S. dollar
\nagainst the rupiah.<\/p>\n
However, he suggested that the government adjust electricity
\ntariffs every six months, instead of every three months. (fhp)<\/p>\n
Ties -- Page 8<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/govt-to-hike-electricity-tariffs-1447898607", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }