Berita

The Director General of Electricity and Energy Utilization, J. Purwono has stated that PLN’s proposal to increase electricity base price rate is unrelated with the newly implemented Electricity Law.

“Plans to increase the electricity base price is unrelated with the Electricity Law implementation, but is related to the 2010 National Budget bill” explains the Director General during a press conference at the Department of Energy and Mineral Resources in Jakarta (15/9). The Director General further explains that this increase would not be necessary if subsidies for PLN are sufficient.

The Minister of Energy and Mineral Resources further added that the new Electricity Law has set electricity rates based on equal principles. “Electricity rate is calculated on a regional basis, which is based on purchasing power ability” explains the Minister.

The new Electricity Law will set a different approach in setting tariffs compared with the outgoing law. Under the outgoing law, electricity prices is consistent in all parts of Indonesia, meanwhile under the new law, electricity prices is determined together by the government and the House of Representatives, with varying differences in different regions according the respective area’s purchasing power. “Electricity price is set by regional governments with the House of Representatives similar to what is currently being implemented in Batam”.

The Minister explains that even though Indonesia may not be set under a single price rate, what is more important is the principles of equality. “Those living in the upmarket districts of Menteng and Pondok Indah must be charged a different rate than those living in rural villages” concludes the Minister.