Electricity rates up again

Electricity rates up again

U.S. aggression in Iraq might have diverted Indonesians'
attention away from their economic burden. Many of us may have
forgotten that electricity charges increased by an average of 6
percent on April 1.

The government has agreed that electricity rates shall
increase by an average of 6 percent every three months. This will
obviously become a burden for citizens in their daily lives.

Businesses have also been affected. Amid weakening exports,
the increase in electricity rates will worsen the situation.
Production costs will also rise, forcing producers to increase
the price of their products. In such a situation imported goods
become very competitive.

The domestic market also weakens under such circumstances.

The problem will seem worse for consumers when they realize
that state electricity company PLN has yet to improve its
professionalism, despite steady increases in electricity rates.

In several parts of Sumatra the electricity supply is
regularly cut off once a week.

There is always a classic reason for PLN to increase tariffs:
Its operational costs are higher than the price of the power sold
to its customers. This has been blamed for the financial losses
of PLN.

It might be wise for the government to review its decision to
increase electricity charges.

-- Republika, Jakarta