Govet may raise power tariffs

Govet may raise power tariffs

Bloomberg, Jakarta

Indonesia may raise electricity tariffs by as much as 7 percent if the PT Perusahaan Listrik Negara, the state utility, remains unprofitable, a government official said.

PLN, as the company is known, has never made a profit, said Yogo Pratomo, the director-general of electricity at the Energy and Mineral Resources Ministry. The company's accounts for last year are still being audited, he said.

Starting March 1 this year, the government cut fuel subsidies, effectively raising fuel prices by an average of 29 percent. PLN President Director Eddie Widiono said in a March 1 interview that costs would soar as a result of the subsidy cuts and the utility may ask the government to allow higher tariffs.

"If we allow them to raise tariffs, it will be at a maximum, 7 percent," Pratomo told reporters after meeting Energy and Mining Resources Minister Purnomo Yusgiantoro.