PLN proposal to increase electricity tariffs acceptable: Minister

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that the proposal from state electricity company to increase electricity tariffs gradually so that the tariffs would reach 7 U.S. cents per kilowatt per hour of electricity in 2005 was acceptable. Otherwise, PLN would never book profits.

Nevertheless, the government's special team tasked to handle electricity issues based on Presidential Decree (Kepres) No. 133 was still studying the proposal. Purnomo noted that the proposal to gradually increase electricity tariffs was one of PLN's four proposals presented to the government's Kepres 133 team.

The other proposals included PLN's wish to swap its multi-billion dollar debt to the government with equity, re-evaluations of PLN assets and restructuring of PLN's finance.

Speaking before ambassadors of 26 member countries of Economic And Social Commissions For Asia Pacific (ESCAP) in Jakarta on Tuesday, Purnomo cautioned that the government would not just accept PLN's proposals, especially on debt-equity swap because it dealt with state budget. Nevertheless, he would let the Kepres 133 team to decide. (Godang/Epin)