Power tariff hike delayed

JAKARTA (JP): Minister of Mines and Energy Kuntoro Mangksubroto has delayed for an unspecified amount of time the planned hike in power prices, which was scheduled for this month.

Ministry spokesman Budhi Sulistyo said on Friday that the action was taken in view of the economic difficulties faced by the public during the economic crisis.

The government, however, will raise by 20 percent the price of power for luxury houses, starting with next month's bills.

The government was aware that the action would affect state electricity company Perusahaan Listrik Negara's ability to provide power to the public, Budhi said.

But the government will continue supporting the company with subsidies.

"However, the subsidies will be systematically and gradually phased out so that the government can allocate the money to other sectors which are more in need of it," Budhi said. (jsk)