DPUN to bring electricity tariffs to Cabinet meeting

The National Business Development Council (DPUN) will bring the dispute between businessmen and the government over electricity tariffs to the next Cabinet meeting.

According to the secretary general of the Association of Indonesian Textile Producers (API), Irwandy Muslim Amin, DPUN would voice businesses' concerns over the planned electricity tariff increase by between 88 percent and 101 percent.

He said the Cabinet meeting should take a decision that would give certainty and relief for businesses.

"Since the increase in basic electricity tariffs, the industries have been haunted by possibilities of state electricity company PT PLN's arbitrary move to cut electricity supplies to their industries," he said.

He said the concerned parties had discussed the businesses' concerns over the high electricity tariff increase. They include DPUN chairman Sofyan Wanandi, PLN's marketing director Eddy Widiono, government officials and executives of business associations.

Irwandy said businesses, especially textile producers, could not afford such high electricity tariff increase. He said textile producers could afford only 20 percent increase from the previous tariffs.

Nevertheless, Irwandy said, textile companies also understood the constraints faced by PLN and the government, and therefore, they proposed a gradual increase in electricity tariffs.

The proposed that the current level of increase in basic electricity tariffs is spread in two to 2.5 years. PLN could increase electricity tariffs every six months, with an increase of 20 percent in the first six months, then 16 percent in the next semester, then 20 percent, 20 percent and lastly 24 percent. (*)