The Jakarta Post | Sat, 10/18/2008 4:00 PM | Business Business owners in Batam free trade zone have threatened to put their operations on halt if the local state power firm insisted on imposing an increase of 14.8 percent in electricity tariffs.
Batam Employers Advocacy Team member Abdullah Gosse said Saturday that business owners in the city would make Batam “dark” for three days.
“Everyone will take part, including hotels, restaurants and industries,” Abdullah said quoted by state news agency Antara.
State power firm PT Perusahaan Listrik Negara (PLN) recently decided to raise electricity tariffs starting Oct.1, making the average cost of electricity up from Rp 935.5 per kilo watt hour (Kwh) to Rp 1,074 per Kwh.
The decision was made under the consent of Energy and Mineral Resources Minister with the aim to ensure the sustainability of electricity supply in the free trade zone.
The advocacy team demanded the company to review the decision or Batam would have its economic activity suspended from Nov. 21 until 24. Bills for electricity usage in October would be sent to users on Nov. 20.
Abdullah argued that Batam must provide a competitive electricity pricing if it to attract foreign investors.
Batam Mayor Ahmad Dahlan has responded to the demand by vowing to facilitate a negotiation between the business players and the local PLN administrators.
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