PLN won't lower electricity tariff
Monday, May 29 2000 - 03:30 AM WIB
The state electricity firm PLN won't lower its electricity tariff despite calls from the country's ailing industries.
PLN marketing director Eddie Widiono was quoted by the Bisnis Indonesia daily as saying that the government was only ready to negotiate over the payment system, not to negotiate over the tariff.
The House of Representatives have earlier called PLN to negotiate with the local industries.
Eddie also said that although PLN raised its tariff by 40 percent in April, its tariff was still the lowest compared to the tariff in the other Asian nations.
He pointed out that in China, the tariff was more than 5 U.S. cent per Kwh, while in Indonesia it's 3.5 U.S. cent per Kwh assuming an exchange rate of Rp 7,000 per U.S. dollar.
Eddie said that if local textile companies, for instance, could not compete in the international market following the rise in electricity tariff, it's not the fault of PLN but it's because of inefficiency in the textile industry. (*)