GOVT WAITING FOR HOUSE TO RAISE POWER RATE

Jakarta, March 15 (ANTARA) - The government is still waiting for the results of its discussion with the House of Representatives (DPR) to decide whether or not it will raise the basic power rate (TDL).
The government could not arbitrarily decide any power rate hike, Coordinating Minister for Economic Affairs Hatta Radjasa said prior to a plenary cabinet meeting at the presidential office here on Monday.

"The government cannot decide it arbitrarily. Therefore, we, along with the House will look at all aspects such as the budget capacity to provide electricity subsidy, the public's purchasing power, and the financial capacity of state power utility PLN. So, let's wait for the results of the discussion with the House," he said.

He said the discussion would take place in March or April when the government and the House discussed the draft of the revised 2010 state budget.

At the previous discussion, the government and the House had agreed to raise the basic power rate by 15 percent in January. But the government later put the planned power rate hike on hold, citing the economic recovery was ongoing.

"So we will discuss it (the plan) again. The planned 15 percent hike mentioned by the finance minister was obtained from the previous discussion," he said.

He said the state fund allocated for electricity subsidy this year was quite huge, reaching more than Rp54 trillion. More than a half of the subsidy would go to able subscribers.

"That's why I always say that subscribers of 6600 watts and above must pay their electricity bills according to their economic capacity. Yet, we have to discuss the matter with the House according to the standing procedure," he said.

Finance Minister Sri Mulyani Indrawati said last week the government would soon raise basic power rates by 15 percent. But the hike would not affect all categories of subscribers.