Jero Wacik Electricity tariff increases SBY’s success

Jero Wacik Electricity tariff increases SBY's successESDM Minister Jero Wacik again boasted the performance of the era of President Susilo Bambang Yudhoyono (SBY). This time, Jero Wacik mentioned, the electricity tariff increase which will come into effect next month as an illustration of SBY's success in economic development.

"This is the result of the development of Mr. SBY, the welfare rises and the need for electricity goes up, so we need to build another power plant," he said.

The higher demand for electricity makes PLN need big funds to build new power plants. The government claimed to have tried with the approach of public-private funding (PPP) but not easy and hit land acquisition.

"PLN has to build electricity and there must be money from which money comes from income, so there must be additional income so it must raise electricity tariff," he said.

The former tourism minister admitted that 2-3 million new customers were rejected due to insufficient electricity capacity. "I know it's hard and I'm raising it gradually, it's probably not too," he concluded.

Previously, the House of Representatives Commission VII finally approved the plan to increase electricity tariffs starting July 2014. ESDM Minister Jero Wacik also agreed to increase the electricity tariff for the industry and households.

Starting next month or July 2014, there will be 6 types of customers who will experience an increase in electricity rates. Starting from non-public category I-3 non-public with an average increase of 11.57 percent made every two months from July 2014 to come.

Second, R-2 households with 3,500 VA to 5,500 VA, a gradual increase of 5.70 percent. The increase of government electricity tariff of P2 class above 200 KvA gradually averaged 5.36 percent every two months.

"The savings of these 3 options is Rp 5.25 trillion and the subsidy is Rp 90.10 trillion from the initial Rp 95.35 trillion," said Jero Wacik yesterday.

Households with a 2,200 VA R-1 class with an average increase of 10.43 percent performed every two months.

The 1,300 VA R-1 households experienced an average increase of 11.36 percent and were conducted every two months. Street lighting also gradually increased by 10.69 percent."If all of the 6 options will save Rp 8.51 trillion," he said. "Anyone who becomes president is going to raise this subsidy is no longer burdensome, so we do not burden the new government," he concluded. [noe]

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