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Jakarta Post

Most SMEs insulated from power tariff increase: Govt

  • Rangga D. Fadillah

    The Jakarta Post

Jakarta   /   Sat, January 28 2012   /  12:45 pm

The Energy and Mineral Resources Ministry claims that there will be no significant impact on industries and small and medium enterprises (SMEs) if the power tariff is raised by 10 percent this year.

Based on a study by the University of Indonesia’s Institute for Economic and Social Research (LPEM-UI), industrial competitiveness and 90 percent of SMEs would not be affected by the price increase, the ministry’s Director General for Electricity, Djarman, said Friday.

“There are two options for the price increase policy,” he told reporters.

The first option sees an increase only for customers with installed capacity of above 450 volt-ampere [VA]. The second option is an increase for all customers, with a price rise applying to 450 VA and 900 VA customers if their consumption exceeds 60 kilowatt-hour (kWh).

Djarman said that the two options would be discu...