JAKARTA (Yosefardi) – Government and Commission VII of the Lower House of Representatives (DPR) have agreed the electricity tariff hike for group 13 and 14 of industrial sector (large scale industry), especially the companies listed at the Indonesia Stock Exchange (IDX).
Efective on May, 2014, the electricity tariff will be raised by 38.9% for group 13 of industrial sector and by 64.7% for group 14.
The revocation of electricity subsidy for group 13 and 14 would save money of up to Rp8.85 trillion by 2015. Currently, larges scale industry (group 13 and 14) also get subsidy on the electricity.
The group 13 (Gudang Garam, Astra International, Gajah Tunggal) consume electricity of above 220 kVA while the group 14 (steel and cement producers) consumes electricity of above 30,000 kVA.
The government will also make tariff adjustment for other four groups (household, middle and large business segment, government office), to save subsidy by Rp1.42 trillion.