Apindo ProposesPower Rate Increase By 10 Pct

Jakarta, Dec 27 (ANTARA) - The Indonesian Businessmen Association (Apindo) has urged the government to revise its planned power rate increase from 15 percent to 10 percent in 2013. "We want the Ministry of Energy and Mineral Resources to revise the power rate increase from 15 percent to 10 percent. We are confident that our proposal will be accepted," said Apindo`s Secretary General, Franky Sibarani, on Wednesday. He said the government`s plan to increase the electricity tariff by 15 percent will hinder the growth of many businesses, even if the increase is carried out on a quarterly basis by 4.3 percent every quarter. Franky said next year, an increase in the power rate, together with an increase in the workers` provincial minimum wages, will increase the cost of businesses by about 43 percent. Therefore, Apindo hopes that the government will revise its planned power rate increase from 15 percent to 10 percent. The implementation of the remaining 5 percent increase can be postponed until 2014. Indonesia`s Industry Minister, MS Hidayat, said the increase in the electricity tariff is a challenge for many businesses in the country. "An increase in the power rate should not be decided unilaterally," he said. "I represent the government and I hope all the industries will come to a consensus on an increase in the electricity prices that is ideal for all the businesses," the minister said.