Electricity rates to be raised by January
Finance Minister Agus Martowardojo has said that the government aims to increase electricity rates by January next year, pending the approval of the House of Representatives.
“As of Jan. 1, the rates will be increased by three to four percent,” Agus told a press conference on Friday.
He said that should the proposal to increase the rates be approved by the House, the state would receive extra income of between Rp 11 trillion (US$1.15 billion) and Rp 12 trillion, all of which would be added to the infrastructure budget allocation.
Agus said that the increase was due to increasing electricity production costs, “so the rate adjustment is necessary.”
The ministry’s fiscal agency head Bambang Brodjonegoro added that the increase would top 10 percent by the end of next year.
“The adjustment will be conducted in stages so that [the increase] won’t burden householders,” Bambang said.
The government proposed to increase electricity subsidies to Rp 80.9 trillion next year, based on assumptions that the global oil price would be $100 per barrel and the exchange rate of Indonesian rupiah against the US dollar would be Rp 9,300 per dollar.
Energy and Natural Resources Minister Jero Wacik said that the government would soon discuss the matter with the House’s Commission VII overseeing energy, tempo.co reported. (swd)