Kadin Urges PLN to be Consistent in the Determination of Tariffs

By : Ridwan And Aldo Bella Putra | Wednesday, January 31 2018 - 19:00 IWST

Achmad Widjaja, Wakil Ketua Komite Tetap Kamar Dagang dan Industri (KADIN) Indonesia Bidang Industri Hulu dan Petrokimia

INDUSTRY.co.id - Jakarta, The government through the Ministry of Energy and Mineral Resources (ESDM) is discussing a new formula for calculating electricity tariffs.

In the new formulation, the government will include the component of the coal price of reference (HBA). Previously, electricity tariff calculation was only determined by Indonesia Crude Price, rupiah exchange rate against US dollar, and inflation rate.

Vice Chairman of the Standing Committee of the Indonesian Chamber of Commerce and Industry (Kadin) for Upstream and Petrochemical Industries, Achmad Widjaja assessed the government's decision to raise the electricity tariff by incorporating the coal component as an incorrect reference.

"Based on the study, the calculation of the cheapest price remains coal so that the electricity tariff is no reason to rise," said Achmad Widjaja to INDUSTRY.co.id in Jakarta, Wednesday (31/1/2018).

According to him, we as users always look for studies so that the industry does not pay more. "As an industrial entrepreneur we need energy certainty from PLN to be consistent in the application of tariffs," he explained.

He asserted that the Ministry of ESDM, PLN, and Pertamina which is a holding in the government's cabinet should be a unity in determining the utilization of the processing industry.

"As a result, economic growth is stagnant and there is no certainty," said AW.

The same thing also conveyed by Vice Chairman of Trade Chamber of Commerce and Industry Benny Soetrisno rate, the government's plan to adjust the new electricity tariff formula has the potential to raise electricity tariffs and can be a burden for society and industry.

"The cost of production so raise all, to less competitiveness," said Benny.

He proposed the government to implement the package of economic policy III, namely the provision of tariff discounts of up to 30 percent for electricity consumption from midnight at 23:00 until the morning at 08.00, when the burden of electricity system is low for the Industry.

"For the middle road industry the third policy package that gives discount incentives to the 24-hour electricity industry is run, but now it is not running, instead of increasing the tariff, it is not fair," he said.