Industries opposes the idea to fix electricity tariffs through negotiations

Major companies particularly textile producers have opposed the government's plan to fix the electricity tariffs for industrial users based on their negotiations with the state owned electricity company PLN, Kompas reported on Tuesday.

The executive secretary of the association of textile producers Ernovian Gysmi Kim Tae Sik said in Jakarta on Monday that fixing the electricity rates through negotiations would only benefit PLN because the latter would only care about making profits without considering the financial burden of the industries.

The industries, according to him, still need the government as the mediator because setting the electricity tariffs should also consider the ability of the companies to bear the cost, he said.

"If the government is not involved, it will open the chance for PLN to set up tariffs based on its own calculation, which will in turn further cause high economy costs," he added.

Minister of Industry has suggested the setting up of two different systems in fixing the tariffs for PLN's household and corporate customers.

According to the minister, the tariff for household customers should be regulated by the government, while those for industries should be determined through their negotiations with PLN. (*)