Businessmen Reject New Industrial Electricity Rate
20 April 2014 04:22 WIB
TEMPO.CO, Jakarta - Businessmen had rejected the government's plan to raise electricity rate for middle and big scale industries starting May 1, 2014.
According to Deputy Chairman of the Indonesian Steel and Metal Industry Association, Ismail Mandry, there was a tariff discrimination between customers of middle scale industries registered in the Indonesian Stock Exchange and those who are not registered.
"This kind of rate differences has created an unhealthy competition among industries," he said.
Under the Regulation of the Energy Minister Number 9 of 2014 signed on April 1, 2014, the government applies two types of traffic for middle industry customers with the electricity power installed above 200 kilowatt.
Tariff for costumers I-3 that registered their shares in the stock exchange rose 38.85 percent starting May 1, into Rp1,115 per kilowatt hour (kWh). In the meantime, for those who have not registered their shares, they will not be affected by the rise.
Ismail said that tariff discrimination also affects electricity customers from big scale industries because under the ministerial regulation, big scale industries with the electricity power of 30,000 kilowatt (I-4) will have their electricity rate raised by 64.73 percent.
Electricity tariff for type I-4 is currently at Rp723 per kWH and is expected to rise every two month into Rp1,191 kWh on November 1, 2014.
BERNADETTE CHRISTINA MUNTHE | ANGGA SUKMA WIJAYA
