Associations turn to Rizal to solve conflict with PLN

Five business associations have turned to Coordinating Minister for Economic Affairs Rizal Ramli to help resolve their mounting conflicts with state electricity firm PT PLN over the implementation of the new electricity tariffs.

The five associations are the Association of Indonesian Textile Producers (API), the Association of Indonesian Apparel Manufacturers (AMI), the Association of Indonesian Billet and Steel Roll Producers (AbBesi), the Association of Indonesian Hotels and Restaurants (PHRI) and the Association of Indonesian Synthetic Fiber Producers (APSyFI).

Around 100 executives of companies grouped in the five associations staged protest in Rizal's office, demanding the coordinating minister to intervene in the affairs and ask the energy and mineral resources minister to stop PLN from cutting electricity tariffs on Sept. 20.

But the protesters failed to meet Rizal to present their demands.

According to API chairman Benny Soetrisno, if PLN cut electricity supplies to members of the five associations, they would stop their production processes that eventually would affect its employees.

"We do not reject the basic tariff increase for 2000. But we only ask the implementation of Presidential Decree No. 48/2000 (on the electricity tariff increase) be implemented gradually and proportionally so that the industries can prepare themselves and minimize the impacts of electricity tariff increase," Benny said.

Meanwhile, An APSyFI deputy chairman Soroatmodjo said that the government, especially the coordinating minister for economic affairs, energy and mineral resources minister and industry and trade minister, must intervene and solve the conflict between the industries and PLN.

He said it was not fair to burden PLN's inefficiencies to its customers, especially big customers. But, he noted that industries grouped in the five associations were ready to negotiate with PLN to prevent the cutting of electricity supplies.

Meanwhile, PLN president Kuntoro Mangkusubroto said that PLN would surely cut electricity supplies to any industry that remained deviant of not paying fully the new electricity tariffs and refusing negotiations with PLN.

Kuntoro said he was aware that a number of industries face cash flow problems. And therefore, PLN offers a business-to-business approach to settle the problems.

Kuntoro noted that four associations refused to heed the new electricity tariffs. But later on one of them agreed to negotiate with PLN. Therefore, currently three associations were still at odd with PLN. They are API, APSysFi and GapBesi.

According to PLN marketing director Eddie Widiono, one association agreed to negotiate with PLN was the Association of Indonesian Automotive Industries (Gaikindo).

Kuntoro explained that out of 54 companies (in Gaikindo), 36 companies had reached an agreement with PLN. "We give a maximum discount of 15 percent to them." (*)