JK Warns Energy Minister of Micro-hydropower Tariff
14 April 2015 19:24 WIB
TEMPO.CO, Jakarta - Vice President Jusuf “JK” Kalla has sent a warning letter to Energy and Mineral Resources Minister Sudirman Said over the tariff of electricity generated by micro-hydropower plants (PLTMH).
“I have given Minister Sudirman a warning since the tariff is far lower than [price set by] the state electricity company (PLN),” JK said during a speech at an energy diversification seminar on Tuesday, April 14, 2015, in Jakarta. “If the tariff is too low, investors won't be interested.”
Under the Energy Ministry Regulation Number 12/2014, the tariff for electricity generated by micro-hydropower plants is set at Rp1,075 per kilowatt hour (kWh). Previously, the tariff was Rp656 per kWh.
According to JK, the micro-hydropower plant is suitable for remote areas.
“Most of the operators are small business owners. So we have to encourage them to build such a power plant,” he said.
JK added that he had been receiving complaints from business owners related to the low tariff amid the weakening of the rupiah. JK suggested that the tariff should be equal to the price set by PLN.
Sudirman said he had received JK's memo and admitted the tariff was too low. However, Sudirman revealed that the ministry was still calculating the most ideal tariff.
“It will be increased,” Sudirman said.
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