The increase in electricity tariff in 2003 will be higher than current levels

The state owned electricity company PLN has hinted that the increase in the electricity tariffs in 2003 would be higher than this year?s levels due to the expected delay in the tariff increase in 2004 during which the government will hold general elections, Bisnis Indonesia daily reported on Wednesday.

PLN?s president director Eddie Widiono said in Jakarta on Tuesday that the government planned not make any increase in the electricity tariffs during the general elections which would be held in 2004 to ease political tension that might be resulted from the tariff increase.

As the consequence, the increase in the electricity in 2003 would be higher than this year?s level. "The increase will be made quarterly so that it will not really burden customers," Eddie told reporters following the government?s coordinating meeting on electricity.

The government has decided to increase the electricity tariffs by about 24 percent a year in order to help PLN cope with its acute financial problem. The increase is made quarterly by about 6 percent. (*)