YLKI: Tariff Reforms Trigger Inflation

By : Herry Barus And Aldo Bella Putra | Saturday, February 17 2018 - 18:00 IWST

Logo Yayasan Lembaga Konsumen Indonesia (YLKI) (hukumonline)
Logo Yayasan Lembaga Konsumen Indonesia (YLKI) (hukumonline)

INDUSTRY.co.id - Jakarta - The Indonesian Consumers Foundation says the government's tariff electricity tariff proved to be a trigger for inflation.

"According to the Central Bureau of Statistics in 2017, electricity tariffs contribute the most dominant in the inflation rate of 0.81 percent," said Chief Executive of the Indonesian Consumers Foundation (YLKI) Tulus Abadi via a written message received in Jakarta, Friday (16/2/2018).

In 2014, the governments roll out tariff-based electricity tariff reforms followed by the implementation of targeted electricity subsidies to 900 VA customers.

Later, the government issued a tariff reformulation discourse by including the price of coal reference into the element of electricity tariffs.

According to Tulus, it can be understood if the government can control the price at the national level, not based on international reference prices.

"'Gonjang-ganjing' coal price should not be a discourse to raise the electricity tariff again because it will hit the purchasing power of consumers," he said.

What the government should do, says Tulus, is to intervene on the price of electricity on the upstream side, not downstream.

"It is very unlikely that on the downstream side the electricity tariff is highly regulated, but on the upstream side is very dynamic and liberal," he said.

The government should be able to set the upper and lower limits for domestic coal sales price so that there is a clear benchmark.

News Comment

Today's Industry

PT Autopedia Sukses Lestari Tbk (“ASLC”)

Selasa, 18 Januari 2022 - 23:55 WIB

ASLC Remains Optimistic, Continues IPO Plan

PT Autopedia Sukses Lestari Tbk (“ASLC”) a company engaged in the automotive sector, ranging from car and motorcycle auctions, online car buying and selling, and car and motorcycle price…

Genetech Biotechnology, the exclusive distributor of Citrea

Selasa, 18 Januari 2022 - 23:20 WIB

Genetech Biotechnology Launches Four Exclusive Promo Bundles For Citrea In Celebration Of Chinese New Year

Genetech Biotechnology, the exclusive distributor of Citrea, launches four exclusive promo bundles to celebrate Chinese New Year. The four bundle sets, The Prosperity Bundle, The Pampering Duo,…

The International Labour Organization (ILO)

Selasa, 18 Januari 2022 - 22:50 WIB

ILO downgrades labour market recovery forecast for 2022

he International Labour Organization (ILO) has downgraded its forecast for labour market recovery in 2022, projecting a deficit in hours worked globally equivalent to 52 million full-time jobs,…

Check Point Software Technologies (Images by Acclaim)

Selasa, 18 Januari 2022 - 22:10 WIB

New Requirements in the Wake of Omicron have led to Increased Dark Market Activity Around Fake Covid Certificates

Check Point Research has warned of a resurgence in counterfeit test and vaccination certificates amid a new wave of infections driven by the Omicron variant of COVID-19. Forged certificate vendors…

DBS Bank Ltd.

Selasa, 18 Januari 2022 - 21:37 WIB

DBS Bank tops Debtwire Asia Pacific (ex Japan) Loans League Table for Green and Sustainability-Linked Mandated Lead Arranger

DBS Bank has ranked first in Debtwire’s Asia Pacific (ex Japan) loans league table for its role as Green and Sustainability-Linked Mandated Lead Arranger (MLA) for the full year 2021. This…