Tuesday, 1 February 2011


President Susilo Bambang Yudhoyono admitted that the Government’s decision to increase basic electricity tariff, or reducing subsidy for electricity was not an easy choice to make. But the important thing was that the decision had been thoroughly considered and consumers protection was well assured, while the increase itself was not too high by percentage. “If we did not decide, the negative impact would be worse” the President remarked during limited cabinet meeting at the Presidential office on Monday (19/7).

To increase basic electricity tariff according to the President was a bitter decision that had to be made. But just the way it was with reduction of subsidy for oil fuel in the past (2008), if we did not make the decision, the negative impact was feared to be even worse. “We have calculated the impact on production cost of many industries resulting from the electricity price increase” the President remarked.

Furthermore President SBY asked the business people to control production cost in relation to electricity price increase, and to make sure that there would be no over pricing. “Never let it happen that a little price increase is blown up for bigger margin. This is not a responsible act, because it means taking advantage of a difficult circumstance. I have asked the Coordinating Minister of Economy to make sure that all the measures taken by PLN (the national electric company) and the industry was justifiable, not troubling the people” the President was quoted as saying.

In regard to the matter the President would directly observe a certain related industry together with the related ministers to know what a responsible company was doing. “I will not hesitate to warn companies who have no conscience, increasing price higher than the reasonable level” President SBY under scored.

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