Rise in Electricity Tariff Blamed for Declining Purchasing Power
8 July 2017 18:02 WIB
TEMPO.CO, Jakarta - The increase in electricity tariff significantly affects inflation in June reaching 0.69 percent. Institute for Development of Economics and Finance (Indef) director Enny Sri Hartati claimed the statement.
The increase in electricity prices, Enny continued, resulted in decreasing purchasing power.
"There is no significant justification that increasing prices on June was triggered by demands. It is the increase in electricity tariff that contributed to inflation and decreasing purchasing power," Enny said in Central Jakarta on Saturday, July 8.
Read: Government No Changes in Electricity Tariffs until June 2017
Based on the data from Central Statistics Agency (BPS), inflation in the groups of housing, water, electricity, and fuel reached 0.75 percent. The inflation rate in such groups is the highest compared to other groups. "Inflation was caused by increasing electricity prices of 900 VA subscription," Enny added.
Enny explained that subscribers of 900 VA electricity are mostly owners of micro, small and medium enterprises (UMKM). When there is a rise in electricity tariff, the prices of products will go up. "This is confirmed by 0.39 percent of inflation in the food group."
ANGELINA ANJAR SAWITRI
