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Indonesia yet to approve power rate increase by PT PLN
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Wednesday, 12 Jan 2011
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The Jakarta Post quoted Mr Darwin Zahedy Saleh Indonesia's energy and mineral resources minister as saying that he has requested clarification from state electricity company PT PLN regarding the company's plan to lift a cap on increases to basic electricity rates for industry.

Mr Darwin said that "The ministry has not signaled its approval to PLN to execute the policy."

Mr Darwin said that the cap was the result of a compromise met between the government and the House of Representatives to avoid public protests against an implementation of the 2010 ministerial decree on basic electricity rates.

Under the new decree, electricity rates for industries were estimated to increase by between 20% and 30%. The government and House agreed to cap the rate increases at 18%. The agreement came into effect in July 2010.

Mr Darwin said that "Before implementing the policy, PLN should report to my ministry first. Then we can discuss the plan with the House Commission VII."

(Sourced from www.thejakartapost.com)

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