Power, ful prices to go up on same day
Power, ful prices to go up on same day
JAKARTA (JP): Minister of Mines and Energy Kuntoro
Mangkusubroto said yesterday the government would raise fuel and
electricity prices concurrently.
But he refused to reveal when the price increase would be
announced.
"Under the preliminary plan, the government will increase fuel
and electricity prices simultaneously, but I don't know when (the
announcement will be made)," he said.
Coordinating Minister for Economy, Finance and Industry
Ginandjar Kartasasmita had earlier said the government would
raise fuel prices this month and electricity prices next month.
According to Kuntoro informal talks involving the ministry
and the House of Representatives on the planned price increases
were in progress.
Thus far, he said, he could not hold a formal hearing with the
House because its members were in recess.
Kuntoro acknowledged the price increases would be a hardship
for the public, but the government had no other choice in order
to reduce its spending.
He said that if fuel and electricity prices were not
increased, the government's subsidies for both commodities would
reach Rp 27 trillion, or US$4.5 billion, broken down between Rp
11 trillion for electricity and Rp 16 trillion for fuel.
Kuntoro attributed the huge subsidies to the sharp fall of the
rupiah against the dollar, rather than the inefficient operations
of the state electricity company PLN and the state oil and gas
company Pertamina.
He said operations of both were relatively efficient.
"As the minister of mines and energy, I have the task of
making the companies efficient and preventing their inefficiency
from contributing to the fuel and electricity price increases,"
he said.
The price rises were expected to increase the country's
inflation rate, but he refused to specify the estimated inflation
rate.
"By comparison, when the government last raised fuel prices in
January 1993, the country's monthly inflation rate after the
increase in fuel prices rose to 2.3 percent, from 1.5 percent in
the preceding month," he said. (jsk)