Minister To Ask For Clarification From PLN Over Package Policy

Jakarta (Antara Bali) - Chief Economic Minister Darmin Nasution said he would ask for a clarification from the state-owned electricity company PLN for its failure to implement a government policy package.

"We want to hold a meeting with them because PLN remains unwilling to implement the policy. There is still a small dispute (that needs to be resolved)," noted Darmin here on Tuesday.

He said it turned out that PLN had not yet implemented a policy to provide the customers with a 30 percent discount on electricity consumption between midnight and morning.

The policy was launched to strengthen competitiveness and was included in the government's third economic policy package announced in October 2015.

Darmin said he would summon the Energy and Mineral Resources Minister and the PLN to ask for clarification because the policy should have been implemented as it was duly issued by the government.

"I was not informed that it had not been implemented. So, the two (the minister and PLN management) will be summoned, since it was the Minister of Energy and Mineral Resources who had formulated the policy. The ministerial decree has been issued but has not been implemented," the chief economic minister said.

In the third economic policy package, the government had lowered the prices of fuel oils, electricity tariffs and gas prices. It also enhanced the number of micro loan scheme (KUR) recipients and simplified the land use licensing procedures for capital investment.

The government, in the third package, had ordered an electricity tariff cut of Rp12-Rp13 per kWh for I3 and I4 industry customers in line with the fall in the oil prices (automatic tariff adjustment).

Besides that, the government had also ordered that 30 percent rebate be given in case of electricity consumption from 11 pm to 8 am when the electricity burden is low.

The third policy package also regulated that labor-intensive industry and industry that is not too competitive be allowed to delay the payment of their electricity bills up to 40 percent in the first ten months, and then be allowed to pay in installments. (WDY)