Electricity: Additional Cost Burdens Industry
Monday, 01 May, 2006 | 17:00 WIB

TEMPO Interactive, Jakarta: The additional cost for electricity usage at peak load borne by industrial customers has been the reason why Indonesia is not competitive. “With the additional cost, it is non-competitive compared to other countries,” said General Chairman of the Industrial Area Union, Johannes Archiadi, last weekend.

According to Johannes, the additional cost will significantly affect investment in the industry of companies coming to Indonesia. “This is a matter of inter-country competition. If the cost in one country is high, investors will think it will be better to invest in another country,” he said.

PT PLN (State Electricity Company) has put the electricity rate from Rp439 per kilowatt-hour to Rp1,380 for industry and top-rated customers above 23 kilovolt-ampere outside the peak load from 11pm to 4pm. The electricity hike was effective for new installations and power addition (Koran Tempo, February 10).

Besides the electricity rate, according to Johannes, the high cost for industry is from the poor land transportation. “Up to now, there hasn't been any concrete solution to the traffic jams on the tollways,” he said.

RR Ariyani