Govt tells PLN not to cut electricity supplies to industries

The government has ordered state electricity company PT PLN not to cut electricity supplies to industries whenever negotiations on the new tariffs between PLN and the industries are still going on.

According to the results of the coordination meeting of economic ministers on Monday, the government through Minister of Energy and Mineral Resources Purnomo Yusgiantoro ordered PLN to negotiate the payment system over the new electricity tariffs with industries facing cash flow problems.

"[PLN is asked] Not to cut electricity supplies for customers when the process of negotiations has not yet produced any result," said a written statement from the result of the economic ministers' coordination meeting.

The meeting also decided not to review the level of the basic electricity tariff increases that had been protested by large industrial users.

"Responding to concerns from the industrial sectors, the minister of energy and mineral resources will order PLN to be accommodative and flexible in responding to the concerns of industrial customers," said the statement.

The decision was made in respond to protests from a number of large industrial electricity users grouped in five business associations. They businesses considered the tariff increases of up to over 100 percent for industrial users as too much.

The five associations are the Association of Indonesian Textile Producers (API), the Association of Indonesian Apparel Manufacturers (AMI), the Associaiton 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). (*)