Monday, 7 January 2013


Commission VII of the House of Representatives agreed on government’s proposal on electricity subsidy of Rp.78.63 trillion or increase of electricity tariff (TTL) by 15% in 2013. The subsidy increase is intended to support economic growth and increase of electrification ratio, but this is not applied to consumers of electricity with a capacity of 450 VA – 900 VA. This is the conclusion of meeting of Commission VII of the House of Representatives and Minister of Energy and Mineral Resources, Jero Wacik, at the House of Representatives’ building in Senayan, Jakarta.

But, the approval was highlighted by recommendation of Indonesian Democratic Parties of Struggle (PDIP) Fraction and Justice and Welfare Party (PKS) Fraction who refused the tariff increase. This is because PDIP Faction could not accept the government’s proposal, and demanded the tariff increase to be postponed. This is stated by member of FPDIP, Daryatmo Mardianto.

While, PKS Fraction asked the government to pay attention to tariff group for 1300 VA electricity as the considered group as they are not imposed with tariff adjustment.

Formerly, Minister of Energy and Mineral Resources stated that it has attempted to decrease losses from 9% in 2012 to 8.5% in 2013, and decrease of losses will continually be attempted. And, consumers of 450 – 900 VA electricity are not subjected to TTL increase, while consumers of electricity with a capacity of above 450 – 900 VA will be imposed with a 15% increase.

Target of new consumers for 2013 is at 2,952, 651 costumers consisting of 742,136 customers in Western Indonesia, 1,268,432 customers in Java Bali, and 942,082 customers in Eastern Indonesia.

President Director of State Electricity Company (PLN) explained that PLN’s debt increases continually, and it is affected by PLN’s investment order of Rp.60 trillion per year. A major part of the debt is allocated for construction of power plant.

BUSINESS NEWS - September 26, 2012

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