PLN increases electricity tariffs

State-owned electricity company PT PLN increased on July 1 the electricity tariffs of its commercial category customers (subscribing at least 3,500 VA capacity) by an average of 1.55 percent.

The electricity tariff of PLN customer subscribing power capacity of 3,500 VA-5,500 VA, for instance, is raised to Rp 1,547.94 per kWh from Rp 1,524.24 in June. The tariff for business customers, industrial customers, and government offices subscribing capacity of more than 200 kVA is increased from Rp 1,200.65 per kWh in June to Rp 1,219.31 per kWh in July.

Sampurno, a manager at PLN, was quoted by Kontan as saying Thursday that the tariff adjustment was made in line with changes in the country?s three key macroeconomic factors including Indonesia Crude Price, exchange rate of the rupiah against the US dollar, and inflation rate over the past two months.

Spokesman of the Ministry of Energy and Mineral Resources Dadan Kusdiana said that the electricity tariff of the commercial category customers (non-subsidy) can change every month depending on the country?s macroeconomic picture.

Meanwhile, Haryadi Sukamdani of the Indonesian Employers Association (Apindo) said that the tariff increase would weaken consumers purchasing power, which in turn could undermine efforts to push economic growth higher. (*)