Singapore Power threatens PLN Batam

The Singaporean electricity company?s plan to cut tariff by 10 percent will threaten the future of PT PLN Batam, according to the state electricity company?s president Ali Herman.

Herman did not explicitly state why the lower tariff imposed by the neighboring country?s power company would threaten the existence of PLN Batam but he hinted that with such low tariff the Singaporean power company would be competitive enough to expand its service into the industrial bonded island.

According to him, the main target of the Singaporean company will be to lure manufacturing companies in Batam.

Herman said that the low tariff would be possible after the Singaporean company was allowed to buy Indonesia?s natural gas from the Natuna island. ?Actually we should be the first to get the priority to use the natural gas so that we will be also to reduce the operating cost,? he added.

He said that the current tariff imposed by PLN Batam has been too law and should be increased. (*)