TEMPO Interactive, Jakarta:Minister of Finance Rizal Ramli stated that the government and House of Representative (DPR) agreed to increase the electricity rate by up to 17.47 percent in this budgetary fiscal year (14/6).
“In order to handle its impact on the lower class, the government will set aside Rp 4.727 trillion for subsidies,” said Rizal who was accompanied by Minister of Energy and Mineral Resources Purnomo Yusgiantoro and Coordinating Minister for the Economy Burhanuddin Abdullah.
Rizal explained that the subsidies would be given to 30 percent of PLN (state-owned electricity company) customers, those who use 450 volt-ampere or 70 kwh per month. The increase of the electricity rate is scheduled to take effect on July 1. It is expected that only the upper class will pay more for electricity.
At the same time, Purnomo Yusgiantoro explained that there is a possibility that Java will suffer an electricity deficit in 2004 because demand for electricity is growing fast in Java. In response the government will continue its plan to build Tanjung Jati B electric power station. However, the Finance Department should first discuss it with the related departments, and examine the government’s ability to complete the project. If the project can be completed in 2004, the demand for electricity in Java may be fulfilled.
The government has processed a regulation regarding the project. “Shortly it will be issued by the government,” Purnomo said.
