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Asian Viewpoints

Indonesia to raise electricity tariffs for first time in five years

Indonesia's state-owned power company Perusahaan Listrik Negara (PLN) will raise some of its electricity tariffs from Jul 1. This will be for the first time in five years in the country to raise electricity tariffs. In Indonesia, the government gives a subsidy for electricity tariffs to curb prices. But due to a recent sharp rise in international oil and gas prices, the subsidy increased and the state finance was under pressure. To lighten the pressure, the government permitted PLN to raise its tariffs. The tariffs will be raised for users with 3,500 volt-ampere circuits or higher. To avoid disruptions to economic growth, the electricity tariffs for industries such as manufacturers will be not raised this time. The middle to high income brackets, governmental organizations, public buildings and some merchants will be affected. The magnitude of the rise in the tariffs is estimated to be 17.6-36.6%. The Indonesian government is expecting that this will push up the inflation rate of the country by 0.019%. From the financial and industrial sectors, severe criticisms are not heard. On the other hand, residents in major cities such as Jakarta and small-to-medium-sized enterprises are dissatisfied about the hike.

Singapore : Energy Desk  Satoshi Hagimoto   +81-3-3552-2411Copyright © RIM Intelligence Co. ALL RIGHTS RESERVED.