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Indonesia PLN Should Not Raise Tariff

"The increase in the basic electricity tariff won't be the solution for PLN's problems"

Senin, 16 November 2009, 09:44 WIB
Antique, Ferial
PLN Office (www.plnjaya.co.id)

VIVAnews - State electricity compant PT Perusahaan Listrik Negara (PLN) is planning to raise the basic tariff of electricity by 2010.

Public policy observer Agus Pambadio however claimed that it will not be the solution to handle the problem that has marred the electricity company. "The increase in the basic electricity tariff won't be the solution for PLN's problems," he said on Monday, Nov 16.

According to him, the most effective answer for the state electricity company to improve its investment and financial condition will be to be granted the Rp 75 trillion subsidy by the Ministry of Finance.

Member of the House of Representatives Commission VII Alimin Abdullah said PLN will need around Rp 100 trillion of fund to comply with the projected economic growth of six percent. 

"Everyone these days needs electricity," he said.

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Translated by: Bonardo Maulana Wahono

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