TEMPO.CO, Jakarta - The Ministry of Industry encourages energy-intensive small industries to use alternative energy following the electricity tariff hike. This is intended to reduce the industry's reliance on electricity from PT PLN that has become increasingly expensive.

"We are counting the number of energy intensive, small industries that need help acquiring alternative energy," said Busharmaidi, secretary of the Directorate General of Small and Medium Enterprises at the Ministry of Industry.

According to Busharmaidi, his Ministry will offer power sources other than PLN. "The alternative could be to gas, coal, micro hydro, or solar power," he said.

Economist from the Indonesian Institute of Sciences (LIPI), Latif Adam, said that the electricity tariff hike for industrial groups I-3 and I-4 will also affect small and medium industries. Electricity is a key factor of production, including for SMEs. "SMEs will get hit by the hike's second round effect."

Latif appreciates the Industry Ministry's idea to reduce SMEs's dependency on PLN's electricity. However, he said, the ministry needs to map out energy sources that can be developed in the nearest production center.

Erwin Aksa, deputy chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for the SME and cooperatives sector, also said that industry need to start considering using alternative energy.

AMIR TEJO | ALI HIDAYAT | RACHMA TRI WIDURI