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NEWS UPDATES 6 December 2009

Indonesia considers raising basic power rates

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Indonesian government is currently discussing its plan to raise the basic electricity rate by 10 - 20 percent in 2010, a minister said, adding the decision on percentage has been agreed by the House of Representative, reported national news agency Antara.

"The government is considering two things in raising the basic electricity tariffs, namely the rates should be able to provide profit for the survival of PLN but it should also be able to reflect the purchasing power of the people," Energy and Mineral Resources (ESDM) Minister Erwin Saleh said here on Friday.

He said that the range at between 10 and 20 percent had been decided by the government and the House of Representatives (DPR). It was contained in attachment of Law No. 47 on 2010 State Budget.

The minister said that the formulation of the basic electricity tariff was now under intensive discussions by, among others, expert staff of ESDM ministry, the electricity director general and first echelon officials of the finance ministry.


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