PLN proposes 30-80% hike in electricity tariff

Industries and business community have rejected a proposal by state-owned electricity company PT Perusahaan Listrik Negara (PLN) to increase rates by between 30 percent and 80 percent, Investor Daily reported on Thursday.

?Businesspeople have been twice invited to a presentation by PLN on its plan to raise power rates for industries by 30 percent, 50 percent dan 80 percent. PLN argued that the subsidy provided by the government for this year was only enough only for eight months' consumption," Ernovian G Ismi, secretary general of the Association of Indonesian Textile Producers (API), said.

During the meetings, officials from API, the Indonesian Chamber of Commerce and Industry (Kadin) and the Association of Indonesian Employers (APINDO) said that PLN needed to improve its efficiency and power supply management before raising the electricity tariffs.

?Most businessmen do not agree with the electricity rate increase. We don?t want PLN get profits, while we suffer losses,? APINDO's chairman Sofjan Wanandi said.

Moreover, Sofjan said, PLN had no rights to increase the rates without the consent of the members of the House of Representatives (DPR), because under the electricity law, the tariff increase should be approved by the government and the House members. (*)