T

he government'€™s program to give a 30 percent discount on the cost of electricity from late night until early morning will benefit only a small number of companies, according to an association of business owners.

The Indonesian Employers Association (Apindo) secretary-general Sanny Iskandar said most of the companies that were engaged in manufacturing activities would be unable to benefit from the incentives, because it would be given only for extra electricity usage.

'€œWhat we understand, from PLN'€™s explanation, is that the discount will be applied to this extra electricity usage only,'€ he said, adding that the limitation meant that several industries, such as retail, could not benefit.

As part of the government'€™s third economic policy package, announced recently, the government offered a 30 percent discount on the use of electricity from 11 p.m. to 8 a.m. In addition, companies suffering financial problems will be allowed to make electricity payment installments over 12 months.

However, PLN head of marketing division Benny Marbun said on Sunday that the 30 percent discount would only be applied to the excess use of a company'€™s average electricity consumption. The discount would be calculated outside the peak hours tariff (LWBP).

'€œWe measure average consumption from their normal usage, looking back from September to June,'€ he wrote in a text message. He added that only medium and big industries would receive the benefit because, currently, small scale industries are already enjoying a subsidized tariff.

Benny said that he had talked with business associations such as Apindo with regard to the implementation of the incentives.

The Indonesian Textile Association (API) chairman Ade Sudrajat also expressed disappointment toward the policy, saying it was hard to find companies that would be able increase their electricity use above their normal level in the current sluggish economic conditions.

'€œAll industries thought, at first, that the discount would be applied to current use,'€ he said over the phone on Sunday, adding that businesspeople had prepared themselves to move their work shifts to later in the night.

Ade said that the policy was just government lip service.

Meanwhile, the Investment Coordinating Board'€™s (BKPM) deputy director for investment monitoring and implementation Azhar Lubis said on Sunday that his office'€™s special investment desk for textile and footwear industries (DKI-TS) had as many as 41 companies asking for the discount and for the rescheduling of their electricity bills.

'€œThey asked about the discount implementation,'€ he explained, expressing his hope that the policy would soon be implemented.

He also said that some of these companies had contacted his office to say that they had received a
relaxation in electricity bill payment from PLN that allowed them to make payment installments over 12 months.

Previously, BKPM head Franky Sibarani said that the DKI-TS had launched recently in order to assist existing textile and footwear industries that had faced lay- offs due to weak sales.

The desk, mainly aimed at preventing lay-offs, will receive and identify problems experienced by companies in the industry and offer them specific and applicable solutions.