Legislator against basic electricity tariff increase this year
Friday, March 9 2001 - 04:30 AM WIB
Legislator Rustam E. Bamburaka expressed his rejection against the proposal from the state electricity company PT Perusahaan Listrik Negara (PLN) to increase basic electricity tariffs this year to ensure its continuing operation.
Rustam from the House of Representatives' Commission VIII said that he could understand the reasoning presented by PLN but he noted that the electricity price increase could not be implemented this year.
"The House will not agree if the basic electricity tariffs will be increased this year. This will only add to the burden of the people," he said.
He contended that there were three reasons why the House would reject the proposal to increase basic electricity tariffs.
"The political situation is not conducive. If the increase is implemented, it will only worsen the situation. The government should consider this seriously," he said.
Secondly, economic situation was not yet really improved, and therefore, if electricity tariffs were raised this year, it would only inhibit economic recovery.
And lastly, the social situation was not conducive either, and therefore, any increase in electricity tariffs could worsen the social situation in the country.
"So, from whatever side, the House will not endorse the proposal to increase electricity tariffs this year," he said.
Earlier, PLN new president Eddie Widiono Suwondho insisted that basic electricity tariffs be raised this year to ensure the continuity of the company's operations.
Eddie said that PLN's operation would be endangered if the electricity tariffs were not raised and electricity subsidy was not disbursed.
Rustam said that the House would support PLN's efforts to seek the disbursement of electricity subsidy for last year, totaling Rp 3.9 trillion.
As reported earlier that the government's electricity subsidy for PLN, amounting to Rp 3.9 trillion, was still held by state Bank Mandiri. Some people said that the fund was deliberately parked at the bank to help the bank's liquidity position. (*)