PLN proposes 29.4% of tariff increase

Amid protests from local industries over its recent electricity tariff increase, state-owned electricity firm PT PLN again proposed to the government and House of Representatives on Tuesday another increase of 29.4 percent in its basic electricity tariffs for this year.

PLN president Kuntoro Mangkusuboro told reporters on the sidelines of a hearing with the House of Representatives' Commission VIII on mines and energy that his party would propose another increase of 29.4 percent in basic electricity tariffs, from Rp 227 per kilo watt per hour of consumption (KWh) to Rp 293 per KWh.

Kuntoro argued that last April's increase in electricity tariffs could not yet cover the company's operating costs, and therefore, his party again proposed another increase only to cover PLN's soaring costs.

"If the basic electricity tariffs are not increased again, PLN will continue to suffer losses," Kuntoro said, noting that the proposed tariff increase would be implemented across the board, from household users to big corporate users.

PLN has raised electricity tariffs of up to 80 percent for big corporate users since April. Such a drastic increase has sparked protests from various industry associations, including the Association of Textile Producers who threatened to stop production if PLN was not flexible in implementing the tariff increase. PLN then agreed to give discounted tariffs for industries upon requests. (*)