PLN Labor Union Criticizes Efforts to Privatize Electricity Sector

Jakarta (Antara Bali) - The labor union of state electricity company (PLN) has criticized the government's intention to build power plants with a combined capacity of 35,000 megawatts (MW), arguing it will speed up privatization of the electricity sector.

"The PLN labor union is trying to stop any efforts to privatize the electricity sector," the Secretary General of PLN Labor Union, Eko Sumantri, said in a press statement released on Saturday.

The labor union had filed an application for a judicial review of the 2009 electricity law as part of efforts to stop privatization of the electricity sector, he said.

Sumantri said the privatization of the electricity sector could potentially create regional electricity companies, which would compete with one another for setting the tariffs for electricity
As a result, electricity tariffs would increase, he said.

The planned construction of power plants with a combined capacity of 35,000 MW has been a priority of the Jokowi and Jusuf Kalla government.

The Energy and Mineral Resources Ministry has included 109 projects in the program, consisting of 74 projects with a capacity of 25,904 MW to be developed by independent power producers (IPP) and 35 projects with a capacity of 10,681 MW to be built by PLN.

In total, the program will cost Rp1,127 trillion. (WDY)