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Indonesian Government Ensures Not to Rise Electricity Price This Year

Posted on: Friday, 7 October 2005, 09:00 CDT

Indonesian government ensures not to rise electricity price this year

JAKARTA, Oct. 6 (Xinhua) -- The Indonesian government ensured here on Thursday not to raise electricity tariff this year, Co- ordinating Minister for Economy Aburizal Bakrie said.

The minister made the statement after a meeting led by Vice President Jusuf Kalla at his office, which was focused on the impact of oil price hike on Oct. 1 and seeking the possibility on finding alternative energy.

"It has been determined that there is no hike of electricity price in 2005," he told a press briefing.

Aburizal said that the government must increase subsidy for the sector in support of the decision.

"We will calculate the minimum figure that still could be received by the stated-owned electricity firm PLN," he said.

Another solution was to accelerate the establishment of private power plants by providing incentive, said Aburizal.

During the meeting, government officials also discussed the possibility of using alternative energy to replace oil, the minister said.

"The government will facilitate the use of coal for households to replace kerosene," he said.

In March, the government allowed the firm to raise 7 percent of electricity price due to the rise of oil price. The firm used to spend 25 percent of its production fund to purchase oil.

The government used to provide subsidy for the operation of the firm.

Indonesia increased oil price by 29 percent in March and 126 percent on average on Oct. 1.

Source: Xinhua News Agency - CEIS

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