Jakarta (Antara Bali) -- The increase in electricity tariffs will affect the production costs borne by companies as power accounts for 15 to 20 percent of the total expenditure, according to the Indonesian Chamber of Commerce and Industry (Kadin).
"The electricity component contributes about 15 to 20 percent to the production cost. So it will have an impact on it," Chairman of Kadin Suryo Bambang Sulisto stated here on Monday.
He added that if electricity tariffs were increased by 20 percent, production costs would increase by about 2 percent. Despite this small increase, it will still have a significant impact on the production cost.
Business players want electricity tariffs to be lowered so production costs can be reduced, the Kadin chairman pointed out.
"Electricity tariffs in our country are different from those in other nations. So we want to see whether we can find a more competitive one," he remarked.
State-owned power utility company PLN raised the electricity tariffs for non-subsidized power consumers in April 2015, up from that in March 2015.
The tariffs were raised after being lowered for seven consecutive months since September 2014. In April 2015, the non-subsidized electricity tariff for five groups of customers was set at Rp1,465.89 per kilowatt-hour. The tariff was raised by Rp39.31 per kilowatt-hour, or 2.75 percent, from the Rp1,426 per kilowatt-hour rate in March 2015. (WDY)
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"The electricity component contributes about 15 to 20 percent to the production cost. So it will have an impact on it," Chairman of Kadin Suryo Bambang Sulisto stated here on Monday.
He added that if electricity tariffs were increased by 20 percent, production costs would increase by about 2 percent. Despite this small increase, it will still have a significant impact on the production cost.
Business players want electricity tariffs to be lowered so production costs can be reduced, the Kadin chairman pointed out.
"Electricity tariffs in our country are different from those in other nations. So we want to see whether we can find a more competitive one," he remarked.
State-owned power utility company PLN raised the electricity tariffs for non-subsidized power consumers in April 2015, up from that in March 2015.
The tariffs were raised after being lowered for seven consecutive months since September 2014. In April 2015, the non-subsidized electricity tariff for five groups of customers was set at Rp1,465.89 per kilowatt-hour. The tariff was raised by Rp39.31 per kilowatt-hour, or 2.75 percent, from the Rp1,426 per kilowatt-hour rate in March 2015. (WDY)
Editor : I Gusti Bagus Widyantara
COPYRIGHT © ANTARA News Bali 2015