Indonesia: PLN Says Electricity Tariffs Remain Unchanged until Year End

Indonesia: PLN Says Electricity Tariffs Remain Unchanged until Year End

State electricity company PLN president director Sofyan Basir said
electricity tariffs will remain unchanged until year end. According to him,
PLN's financial situation is sustainable with current electricity tariffs
until the end of 2017.

"That would be for all category," Sofyan told reporters after an Eid
celebration event held by State-Owned Enterprise Minister Rini Soemarno
today, June 25, in Jakarta.

Read: Govt Ensures Electricity Fuel Supply during Eid in Bali

With current electricity tariffs, PLN predicts lower profit by Rp 1.9
trillion. "But, if the ICP [Indonesian Crude Price] and coal price fall, it
will break even again. So we will not make monthly adjustments. Who knows if
they might fall again," Sofyan said.

As of the end of last year, PLN posted Rp10.5 trillion in profit. Despite
projected decline this year, according to Sofyan, PLN still profits. "Let's
we net Rp10 trillion in profit. Less Rp600 billion. It means we suffer no
loss. We still profit on aggregate."

Read: Minister Jonan Asked for Rp17tn Extra for Electricity Subsidy

Earlier, Energy and Mineral Resources Minister Ignasius Jonan said that
electricity basic tariff (TDL) will remain unchanged from July 1 to the end
of December.

Jonan even urged the PLN to be more efficient for lower electricity tariff
considering the decline in ICP and coal prices. "The government listens to
people's input," he said.

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Link to Original Article:
https://en.tempo.co/read/news/2017/06/25/056887285/PLN-Says-Electricity-Tari
ffs-Remain-Unchanged-until-Year-End

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com