Government says no plan to raise electricity tariff

Although plans have been announced by state-owned electricity company PT Perusahaan Listrik Negara (PLN) to raise electricity tariff by June 2001, the Energy and Mineral Resources Department has said it is yet to receive the proposal.

"We have not yet received a proposal from PLN regarding the increase in electricity tariffs," Lulu Sumiarso, Directorate General of Electricity on the Energy department told the press recently.

"We will study it carefully," he said, adding that no decision has yet been taken.

Several media earlier reported that electricity prices would rise in conjunction with the planned 20% fuel price hike scheduled for April.

Sumiarso added that a formula was needed so that subscribers would not be surprised by the sudden increase in rates.

"Automatic adjustments are already used in the United States," he said.

However he said he was willing to review all proposals received from PLN to see whether the proposed tariff hike was appropriate.

Some officials have expressed concern that the fuel price rise may impact adversely on the millions of poor people in the country, as well as spark unrest.

But the government is also under pressure from donors to cut expensive fuel subsidies.

Industrial consumers have also complained about the proposed price hike.

Irwandy Muslim Amien, Secretary of Indonesian Textile Association (API) said textile producers had demanded the government lower electricity tariffs.

"We have asked PLN to phase in the increased tariffs so that it will not unduly burden textile producers," he said as quoted by DetikCom.

However API added that it does not expect any increased charges from PLN. (*)