Visitors viewed the electricity development plan during the exhibition of Indonesia International Infrastructure Conference and Exhibition (IIICE). (JG Photo/Safir Makki)
Jakarta. The government confirmed on Tuesday that electricity rates were set to go up on July 1.
“The House of Representatives accepts and approves the government proposal [for rate hikes],” House of Representatives Commission VII deputy chairman Ahmad Farial said at the conclusion of a hearing on the issue. Commission VII oversees energy, environmental matters and research and technology.
Farial said the decision would save the government Rp 8.51 trillion ($720.8 million).
The total electricity subsidy to sate-owned power company Perusahaan Listrik Negara (PLN) would fall to Rp 86.84 trillion, from the Rp 95.35 trillion set out in the 2014 Revised State Budget (APBN-P).
A proposal to increase the subsidy to Rp 107.15 trillion, in order to stave off the rate hike, was rejected by the commission.
The hikes were set to apply to commercial and industrial properties and to households. Homes using 1,300 volt-ampere, 2,200 volt-ampere, 3,500 volt-ampere or 5,000 volt-ampere would see average increases of 11.36 percent, 10.43 percent and 5.70 percent respectively every other month. Industries would experience 11.57 percent price hikes at the same intervals.
Ultimately, prices would go up 34.7 percent for industries and up to 34 percent for households.
Energy and Mineral Resources Minister Jero Wacik said that the increases — which were prompted, in part, by the weakening of the Rupiah against the dollar — would ease the burn of the electricity subsidy for the next government.
By Rangga Prakoso on 03:04 pm Jun 11, 2014
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