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Electricity prices to remain unchanged until year-end: Minister
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Energy and Mineral Resources Minister Ignasius Jonan (left) and his deputy Arcandra Tahar (right) attend a hearing at the House of Representatives. (Antara/Agung Rajasa)
T
he government has decided to maintain electricity prices at their current level until the end of 2017 in a bid to boost the country’s industrial competitiveness – a move that will force state electricity firm PLN to undertake various internal efficiency measures to keep its financial performance healthy.
“The President has stated that electricity will serve as the foundation to boost Indonesia’s economic competitiveness,” Energy and Mineral Resources Minister Ignasius Jonan told reporters in Jakarta on Wednesday.
“If electricity prices are more affordable, our industries will be more efficient.”
(Read also: June inflation rises as fares increase)
According to the ministry, since January, non-subsidized consumers of high-voltage electricity have paid Rp 1,467.28 per kilowatt hour (kWh), while mid-voltage and low-voltage consumers have paid Rp 1,114.7 per kWh and Rp 996.74 per kWh, respectively.
Jonan called on PLN to operate more efficiently so that the company could eventually lower prices.
For example, he suggested the company adjust and lower its maintenance costs for its transmission and distribution lines.
PLN spokesman I Made Suprateka said the government’s decision to maintain current electricity prices would pose a significant challenge for the company, which is expected to book revenues alongside a mandate to develop electricity infrastructures nationwide.
“PLN needs to develop electricity infrastructure across the country within the next three years,” Made said. (bbn)
