Thailand
Indonesia: Govt to Not Raise Electricity Tariff Until Year End
TEMPO.CO, Jakarta – Energy and Mineral Resources (ESDM) Minister Ignsius Jonan said that the government will not raise the basic electricity tariff from July 1 to December 31, 2017.
“We will do our best not to raise the tariff from July 1 to December 31. We need the extraordinary competitiveness of industry. The president has asked not to raise the electricity tariff,” the minister stated on Wednesday.
He also explained that regarding the basic electricity tariff (TDL) for housing, the government will do its best to lower it every three months.
“We will gradually lower it in the coming two years. But it should be remembered that it will be done slowly and gradually. It will be lowered at least by 5 percent,” he added.
Jonan noted that he was aware of the fact that it was difficult to implement the plan, but he has sought a deadline till at least 2020, so that the electricity tariff will go down.
He asked the state-owned power company PLN to do its business as efficiently as possible. “How can it be done? It should be efficient in doing its business so that tariff will gradually go down. There are still a lot of people who are ready to buy electricity, but supplies are not available,” he stressed.
The minister revealed that the governments efforts to save on electricity subsidies are made to achieve the goal (subsequently lowing the electricity tariff).
The diversion of the electricity subsidies is used to build not only electricity infrastructure but also bridges, roads, and other infrastructures that are important for the people.
Other challenges faced in the electricity sector are the dependence on foreign currency exchange rate, where the Independent Power Producers (IPP) still use the US dollar rate, so that the selling cost is subject to changes.
The aim of the efficiency drive is to achieve power supplies target based on the 35,000 megawatt power plant program and to meet the peoples hope for power price offered by the government.
Hence, the ultimate goal is to make supplies always available, with prices going down.
“Hopefully, in 2018, higher efficiency drive could be implemented so that electricity tariff would no longer experience an increase,” he noted.
Source: https://en.tempo.co/read/news/2017/07/06/056889176/Govt-to-Not-Raise-Electricity-Tariff-Until-Year-End